HPE Hewlett Packard Enterprise
too hard · 52
Owner-earnings value$38.89
Price$68.81
Margin of safety
-43.5%
Quality gate · 52/100
⚠ sub-hurdle returns (median roic 5% < 9%)
Median ROIC5.0%
Gross margin36.7%
Net debt / EBITDA2.7x
FCF conversion103%
Share count / yr+1.0%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 3.74B |
| Owner-earnings yield | 4.1% |
| Free-cash-flow yield | 4.5% |
| Growth used (normalized) | 6.4% |
| Market-implied growth (reverse DCF) | 21.2% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 11.5% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 3.98B | 6.4% | 3.57B |
| 2 | 4.22B | 6.0% | 3.39B |
| 3 | 4.46B | 5.6% | 3.21B |
| 4 | 4.69B | 5.2% | 3.03B |
| 5 | 4.92B | 4.9% | 2.85B |
| 6 | 5.14B | 4.5% | 2.67B |
| 7 | 5.35B | 4.1% | 2.49B |
| 8 | 5.55B | 3.7% | 2.32B |
| 9 | 5.74B | 3.4% | 2.15B |
| 10 | 5.91B | 3.0% | 1.98B |
⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~21%/yr owner-earnings growth over 10y (reverse DCF); model credits 6%.