Using the industry peer median P/E multiple (trailing + forward), Hewlett Packard Enterprise Company (HPE) has a fair value of $24.67 based on 2 comparable companies in the Communication Equipment industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Hewlett Packard Enterprise CompanyHPE | 33,107 | — | 13.2x |
| Keysight Technologies, Inc.KEYS | 48,479 | 57.9x | 39.9x |
| Super Micro Computer, Inc.SMCI | 13,189 | 13.1x | 10.5x |
| Industry Median | 35.5x | 25.2x | |
| (*) Profit after tax | 57 | 2,511 | |
| Equity Value | 2,024 | 63,306 | |
| (/) Outstanding shares | 1,324 | 1,324 | |
| Fair Price | $2 | $48 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.