Latest Ratios: P/E Ratio -1368.6x · EV/EBITDA 22.6x · ROE 0.2%. (2013–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $80.8B | $32.3B | $26.1B | $20.2B | $18.9B | $19.5B | $11.2B | $22.4B | $23.7B | $23.3B | $22.7B |
| Enterprise Value | $99.1B | $50.6B | $31.0B | $29.5B | $28.2B | $30.1B | $23.6B | $32.5B | $30.9B | $27.8B | $25.4B |
| P/E Ratio → | -1368.61 | — | 10.10 | 9.99 | 21.62 | 5.68 | — | 21.31 | 12.40 | 66.29 | 7.18 |
| P/S Ratio | 2.36 | 0.94 | 0.87 | 0.70 | 0.67 | 0.70 | 0.41 | 0.78 | 0.77 | 0.81 | 0.75 |
| P/B Ratio | 3.26 | 1.31 | 1.05 | 0.95 | 0.95 | 0.97 | 0.69 | 1.31 | 1.11 | 0.99 | 0.72 |
| P/FCF | 128.91 | 51.57 | 13.20 | 12.65 | 12.82 | 5.78 | — | 19.65 | 2960.41 | — | 13.53 |
| P/OCF | 27.69 | 11.08 | 6.00 | 4.57 | 4.11 | 3.32 | 4.99 | 5.61 | 7.99 | 26.21 | 4.58 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.48 | 1.03 | 1.01 | 1.00 | 1.08 | 0.88 | 1.12 | 1.00 | 0.96 | 0.84 |
| EV / EBITDA | 22.63 | 11.56 | 6.21 | 5.86 | 6.53 | 6.27 | 5.64 | 6.80 | 6.25 | 5.48 | 4.08 |
| EV / EBIT | 60.30 | — | 10.35 | 13.22 | 14.67 | 8.07 | — | 17.39 | 55.46 | 36.09 | 6.11 |
| EV / FCF | — | 80.76 | 15.72 | 18.43 | 19.16 | 8.92 | — | 28.47 | 3868.03 | — | 15.15 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.8% | 28.8% | 31.8% | 34.1% | 31.4% | 32.7% | 29.9% | 31.1% | 29.0% | 29.2% | 31.5% |
| Operating Margin | 4.8% | 4.8% | 8.1% | 8.3% | 6.5% | 7.9% | 5.8% | 7.8% | 7.7% | 7.0% | 8.1% |
| Net Profit Margin | 0.2% | 0.2% | 8.6% | 7.0% | 3.1% | 12.3% | -1.2% | 3.6% | 6.2% | 1.2% | 10.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 0.2% | 0.2% | 11.2% | 9.8% | 4.3% | 19.0% | -1.9% | 5.5% | 8.5% | 1.3% | 9.7% |
| ROA | 0.1% | 0.1% | 4.0% | 3.5% | 1.5% | 6.1% | -0.6% | 2.0% | 3.3% | 0.5% | 3.9% |
| ROIC | 3.4% | 3.4% | 6.1% | 6.1% | 4.6% | 5.6% | 4.2% | 6.0% | 6.3% | 4.9% | 5.0% |
| ROCE | 3.4% | 3.4% | 6.0% | 7.0% | 5.2% | 6.1% | 4.6% | 6.3% | 5.9% | 4.0% | 4.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.97 | 0.97 | 0.80 | 0.64 | 0.68 | 0.73 | 1.06 | 0.81 | 0.57 | 0.60 | 0.50 |
| Debt / EBITDA | 5.50 | 5.50 | 3.96 | 2.69 | 3.12 | 3.04 | 4.07 | 2.89 | 2.45 | 2.77 | 2.52 |
| Net Debt / Equity | — | 0.74 | 0.20 | 0.44 | 0.47 | 0.53 | 0.77 | 0.59 | 0.34 | 0.19 | 0.09 |
| Net Debt / EBITDA | 4.18 | 4.18 | 0.99 | 1.84 | 2.16 | 2.21 | 2.97 | 2.11 | 1.47 | 0.88 | 0.43 |
| Debt / FCF | — | 29.19 | 2.52 | 5.78 | 6.34 | 3.14 | — | 8.82 | 907.63 | — | 1.61 |
| Interest Coverage | -0.63 | -0.63 | 25.63 | — | 1.84 | 26.99 | -0.73 | 5.93 | 1.92 | 1.55 | 13.95 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.01 | 1.01 | 1.29 | 0.87 | 0.88 | 0.91 | 0.88 | 0.79 | 1.00 | 1.13 | 1.28 |
| Quick Ratio | 0.76 | 0.76 | 0.99 | 0.66 | 0.66 | 0.69 | 0.74 | 0.67 | 0.86 | 1.01 | 1.20 |
| Cash Ratio | 0.23 | 0.23 | 0.57 | 0.20 | 0.18 | 0.19 | 0.25 | 0.20 | 0.28 | 0.51 | 0.58 |
| Asset Turnover | — | 0.45 | 0.42 | 0.51 | 0.49 | 0.48 | 0.50 | 0.56 | 0.56 | 0.47 | 0.38 |
| Inventory Turnover | 3.85 | 3.85 | 2.63 | 4.16 | 3.74 | 4.16 | 7.07 | 8.34 | 8.96 | 8.85 | 11.71 |
| Days Sales Outstanding | — | 97.02 | 90.07 | 88.08 | 98.99 | 103.63 | 106.57 | 82.45 | 105.71 | 106.64 | 99.40 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 2.5% | 2.6% | 3.1% | 3.3% | 3.2% | 5.5% | 2.7% | 2.4% | 1.8% | 1.6% |
| Payout Ratio | 1396.5% | 1396.5% | 26.2% | 30.6% | 71.5% | 18.2% | — | 58.0% | 29.9% | 124.4% | 11.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 9.9% | 10.0% | 4.6% | 17.6% | — | 4.7% | 8.1% | 1.5% | 13.9% |
| FCF Yield | 0.8% | 1.9% | 7.6% | 7.9% | 7.8% | 17.3% | — | 5.1% | 0.0% | — | 7.4% |
| Buyback Yield | 0.2% | 0.6% | 0.6% | 2.1% | 2.7% | 1.1% | 3.2% | 10.0% | 15.1% | 11.0% | 11.7% |
| Total Shareholder Yield | 1.2% | 3.1% | 3.2% | 5.1% | 6.0% | 4.3% | 8.7% | 12.7% | 17.5% | 12.8% | 13.4% |
| Shares Outstanding | — | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.4B | $1.6B | $1.7B | $1.7B |
Includes 30+ ratios · 13 years · Updated daily
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Quick answers to the most common questions about buying HPE stock.
Hewlett Packard Enterprise Company's current P/E ratio is -1368.6x. The historical average is 17.9x.
Hewlett Packard Enterprise Company's current EV/EBITDA is 22.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.2x.
Hewlett Packard Enterprise Company's return on equity (ROE) is 0.2%. The historical average is 6.5%.
Based on historical data, Hewlett Packard Enterprise Company is trading at a P/E of -1368.6x. Compare with industry peers and growth rates for a complete picture.
Hewlett Packard Enterprise Company's current dividend yield is 0.98% with a payout ratio of 1396.5%.
Hewlett Packard Enterprise Company has 28.8% gross margin and 4.8% operating margin.
Hewlett Packard Enterprise Company's Debt/EBITDA ratio is 5.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Acquisition-driven leverage and margin volatility
Metrics are mathematically derived from official filings.
Valuation Reflects Legacy Hardware Discount
HPE's forward P/E of 13.92 and EV/EBITDA of 8.89 appear to price the company as a mature hardware vendor, a significant discount to peers like Dell (EV/EBITDA 32.07) and IBM (EV/EBITDA 15.69), suggesting the market is not fully valuing its higher-margin networking and recurring revenue streams.
The current valuation multiples, particularly the forward EV/EBITDA of 8.89, are well below the peer group average, indicating the market is applying a legacy hardware discount. This discount appears to ignore the structural margin advantage of the Intelligent Edge segment and the long-term visibility of the GreenLake platform. The negative trailing P/E is a result of recent non-operating charges and does not reflect the core operational earnings power, which is better captured by the forward multiples.
Gross Margin Surge Masks Net Margin Fragility
Gross margin has expanded dramatically to 40.1% in Q3 FY2026 from 31.8% in Q2 FY2024, yet net margin remains volatile at 12.6%, indicating that non-operating items and the high cost of debt are significantly eroding the translation of top-line profitability into bottom-line earnings.
The impressive gross margin expansion suggests a successful mix shift toward higher-margin software and services within the Intelligent Edge segment. However, the persistent gap between operating margin (11.4%) and net margin (12.6%) in the latest quarter, after a period of negative net margins, points to significant non-operating volatility, likely from interest expenses on the expanded debt load and one-time items related to the H3C stake. This implies that sustainable earnings growth is contingent on both maintaining the favorable product mix and managing the financial costs of the strategic pivot.
ROIC Recovery Lags Behind Margin Expansion
Despite the gross margin surge, ROIC has only recovered to 2.6% in Q3 FY2026 from a low of 0.6% in Q2 FY2025, a level that remains well below the cost of capital and suggests the company is not yet generating adequate returns on the significant capital deployed for the Juniper acquisition and GreenLake build-out.
The modest ROIC recovery, when compared to the sharp margin improvement, indicates that the return on invested capital is being diluted by the rapid expansion of the asset base, particularly goodwill from the Juniper acquisition. The current ROIC of 2.6% is far below peers like Dell (34.2%) and NetApp (124.4%), signaling that HPE's capital-intensive transition is still in an investment phase. Investors should monitor whether the revenue growth from the new strategic assets can eventually drive ROIC above the company's weighted average cost of capital.
Core Leverage Masked by Financial Services Debt
The reported debt-to-equity ratio of 0.76 and D/EBITDA of 8.97 appear elevated, but a significant portion is non-recourse debt tied to the Financial Services segment, meaning the core operational leverage is lower than headline figures suggest, though the Juniper acquisition has undeniably increased the overall debt burden.
The sharp increase in total debt to $20.2B from $11.3B over two years is primarily driven by the Juniper acquisition and the funding of customer leases within HPE Financial Services. Analysts must distinguish between this non-recourse FS debt and core operational debt to assess true refinancing risk. The interest coverage ratio is unavailable for the most recent quarter, but the prior quarter's reading of 10.58x suggests serviceability remains adequate for now, though the trend warrants close monitoring as the full debt load from the acquisition is integrated.
Working Capital Swings Distort Cash Conversion
The cash conversion cycle has compressed to just 10 days in Q3 FY2026 from 68 days a year prior, driven by a sharp reduction in days inventory outstanding to 131 days, but this extreme volatility suggests inconsistent inventory management and collection cycles that make underlying operational efficiency difficult to assess.
The dramatic improvement in the CCC is a positive signal for working capital efficiency, but the erratic pattern over the past ten quarters indicates it may be driven by lumpy hardware shipments and acquisition-related accounting rather than a sustainable operational improvement. The days sales outstanding of 75 days is relatively stable, but the large swings in DIO and DPO suggest that HPE's supply chain and payment terms are subject to significant variability, which can obscure the true cash generation profile of the business.
The Misleading Net Margin in a Transition
The net margin is the ratio most commonly misapplied to HPE, as its extreme volatility from -13.8% to 16.1% over recent quarters obscures the underlying operational profitability, which is better reflected by the more stable and expanding gross and operating margins.
The net margin is heavily distorted by non-operational factors such as interest expense on acquisition debt, one-time gains/losses from divestitures like H3C, and restructuring charges. Using it to judge HPE's core earning power is misleading. A more appropriate metric is the operating margin, which has shown a clearer upward trend from 3.4% to 11.4%, reflecting the improving mix of the business. Alternatively, analysts should focus on the gross margin of the Intelligent Edge segment, which is the true driver of long-term value creation.