Latest Ratios: P/E Ratio -974.1x · EV/EBITDA 17.3x · 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 | $57.5B | $32.3B | $26.1B | $20.2B | $18.9B | $19.5B | $11.2B | $22.4B | $23.7B | $23.3B | $22.7B |
| Enterprise Value | $75.8B | $50.6B | $31.0B | $29.5B | $28.2B | $30.1B | $23.6B | $32.5B | $30.9B | $27.8B | $25.4B |
| P/E Ratio → | -974.10 | — | 10.10 | 9.99 | 21.62 | 5.68 | — | 21.31 | 12.40 | 66.29 | 7.18 |
| P/S Ratio | 1.68 | 0.94 | 0.87 | 0.70 | 0.67 | 0.70 | 0.41 | 0.78 | 0.77 | 0.81 | 0.75 |
| P/B Ratio | 2.32 | 1.31 | 1.05 | 0.95 | 0.95 | 0.97 | 0.69 | 1.31 | 1.11 | 0.99 | 0.72 |
| P/FCF | 91.75 | 51.57 | 13.20 | 12.65 | 12.82 | 5.78 | — | 19.65 | 2960.41 | — | 13.53 |
| P/OCF | 19.71 | 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 | 17.31 | 11.56 | 6.21 | 5.86 | 6.53 | 6.27 | 5.64 | 6.80 | 6.25 | 5.48 | 4.08 |
| EV / EBIT | 46.13 | — | 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 | 1.4% | 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 | 1.1% | 1.9% | 7.6% | 7.9% | 7.8% | 17.3% | — | 5.1% | 0.0% | — | 7.4% |
| Buyback Yield | 0.4% | 0.6% | 0.6% | 2.1% | 2.7% | 1.1% | 3.2% | 10.0% | 15.1% | 11.0% | 11.7% |
| Total Shareholder Yield | 1.7% | 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 |
Integration and leverage risk
According to recent market data, HPE trades at a forward P/E of 12.80, which appears to discount the potential margin expansion from its GreenLake transition and networking integration, suggesting investors remain focused on legacy hardware risks rather than the company's evolving software-defined infrastructure business model.
The current valuation multiples suggest the market continues to price HPE as a legacy hardware vendor despite the shift toward higher-margin networking and recurring revenue. This valuation gap warrants further investigation into whether the market is underestimating the long-term terminal value of the Aruba and GreenLake portfolios compared to peers like Cisco.
Based on reported financial statements, HPE's ROIC has struggled to exceed 1.6% in recent quarters, a figure that remains significantly below the company's cost of capital and lags behind the performance of more specialized hardware peers, indicating a persistent challenge in generating value from invested capital.
The low ROIC trend suggests that the company's aggressive acquisition strategy and heavy capital expenditure requirements are currently outpacing the incremental returns generated by these investments. Investors should monitor whether the integration of large-scale assets can eventually drive a meaningful improvement in capital efficiency or if structural headwinds will continue to suppress returns.
As reported in quarterly filings, HPE's cash conversion cycle reached 54 days in 2026Q2, reflecting significant volatility in inventory and payables management that appears to be driven by the complex supply chain requirements of its high-performance computing and AI-optimized server segments.
The fluctuation in the cash conversion cycle suggests that the company is managing significant working capital pressures as it scales its AI infrastructure business. The reliance on long-lead-time components likely complicates inventory turnover, potentially tying up cash that could otherwise be deployed toward debt reduction or shareholder returns.
According to recent balance sheet data, HPE's debt-to-EBITDA ratio has reached 27.52, a level that appears elevated compared to historical norms and suggests that the company's ability to service its obligations is increasingly sensitive to interest rate volatility and operational cash flow performance.
While a portion of this debt is tied to the Financial Services leasing business, the overall leverage profile remains a point of concern for institutional investors. The company's reliance on external financing to fund its strategic pivot and large-scale acquisitions may limit its flexibility to navigate future cyclical downturns in enterprise IT spending.
Based on an analysis of the company's business model, the P/E ratio is frequently misapplied to HPE, as it fails to account for the significant non-operating charges and restructuring costs that distort net income, making EV/EBITDA a more reliable metric for assessing core operational performance.
Using P/E as the primary valuation tool obscures the underlying cash-generating capability of the business, particularly given the volatility introduced by divestitures and the transition to recurring revenue. Analysts should prioritize EV/EBITDA and free cash flow metrics to better capture the true earning power of the firm's integrated Edge-to-Cloud architecture.
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 -974.1x. The historical average is 17.9x.
Hewlett Packard Enterprise Company's current EV/EBITDA is 17.3x. 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 -974.1x. Compare with industry peers and growth rates for a complete picture.
Hewlett Packard Enterprise Company's current dividend yield is 1.38% 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.