DCF Tool


Hewlett Packard Enterprise Co – Computer Storage Device Manufacturing
The Hewlett Packard Enterprise Company is an American multinational information technology company. It is a business-focused organization which works in servers, storage, networking, containerization software and consulting and support. Additionally, the company invests in communications and media solutions.
Analysis Results
Intrinsic Value $22.07
Latest Price $12.04
Relative Value 45% undervalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -11.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -11.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.48 1.43
2023 1.31 1.23
2024 1.17 1.06
2025 1.04 0.916
2026 0.923 0.79
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 27.7 billion. This corresponds to a present value of 23.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.43 billion. Adding in the terminal value gives a total present value of 28.4 billion.

There are presently 1.29 billion outstanding shares, so the intrinsic value per share is 22.07.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 37,756,000,000
Current Cash 7,992,000,000
Current Liabilities 41,374,000,000
Current Debt 7,104,000,000
Non-Cash Working Capital (NCWC) -4,506,000,000
Change in NCWC -6,956,000,000
EBIT 4,588,000,000
Tax Provision 320,000,000
Depreciation and Amortization 5,194,000,000
Capital Expenditure -5,004,000,000
Unlevered Free Cash Flow -2,382,650,125
Current Assets 21,666,000,000
Current Cash 4,233,000,000
Current Liabilities 18,738,000,000
Current Debt 3,755,000,000
Non-Cash Working Capital (NCWC) 2,450,000,000
Change in NCWC -19,000,000
EBIT 1,659,000,000
Tax Provision -120,000,000
Depreciation and Amortization 2,625,000,000
Capital Expenditure -2,383,000,000
Unlevered Free Cash Flow 1,882,000,000
Current Assets 20,956,000,000
Current Cash 3,753,000,000
Current Liabilities 19,159,000,000
Current Debt 4,425,000,000
Non-Cash Working Capital (NCWC) 2,469,000,000
Change in NCWC -299,000,000
EBIT 2,497,000,000
Tax Provision 504,000,000
Depreciation and Amortization 2,535,000,000
Capital Expenditure -2,856,000,000
Unlevered Free Cash Flow 1,066,640,695
Current Assets 22,841,000,000
Current Cash 4,880,000,000
Current Liabilities 17,198,000,000
Current Debt 2,005,000,000
Non-Cash Working Capital (NCWC) 2,768,000,000
Change in NCWC 767,000,000
EBIT 2,522,000,000
Tax Provision -1,744,000,000
Depreciation and Amortization 2,576,000,000
Capital Expenditure -2,956,000,000
Unlevered Free Cash Flow 2,909,000,000
Current Assets 26,654,000,000
Current Cash 9,579,000,000
Current Liabilities 18,924,000,000
Current Debt 3,850,000,000
Non-Cash Working Capital (NCWC) 2,001,000,000
Change in NCWC 1,132,000,000
EBIT 1,858,000,000
Tax Provision -164,000,000
Depreciation and Amortization 3,051,000,000
Capital Expenditure -3,137,000,000
Unlevered Free Cash Flow 2,904,000,000
Current Assets 32,855,000,000
Current Cash 12,987,000,000
Current Liabilities 22,531,000,000
Current Debt 3,532,000,000
Non-Cash Working Capital (NCWC) 869,000,000
Change in NCWC -2,644,000,000
EBIT 3,666,000,000
Tax Provision 918,000,000
Depreciation and Amortization 3,775,000,000
Capital Expenditure -3,280,000,000
Unlevered Free Cash Flow 691,947,781
Current Assets 34,815,000,000
Current Cash 9,842,000,000
Current Liabilities 22,151,000,000
Current Debt 691,000,000
Non-Cash Working Capital (NCWC) 3,513,000,000
Change in NCWC -966,000,000
EBIT 3,724,000,000
Tax Provision -991,000,000
Depreciation and Amortization 3,947,000,000
Capital Expenditure -3,344,000,000
Unlevered Free Cash Flow 3,361,000,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.