Hewlett Packard Enterprise Co., FCFF calculation

US$ in millions

12 months ended:	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
Net earnings (loss) attributable to HPE	2,025)	868)	3,427)	(322)	1,049)	1,908)
Net (earnings) loss attributable to non-controlling interests	11)	5)	9)	11)	16)	(4)
Net noncash charges	3,424)	4,290)	3,805)	4,797)	4,667)	5,899)
Changes in operating assets and liabilities, net of acquisitions	(1,032)	(570)	(1,370)	(2,246)	(1,735)	(4,839)
Net cash provided by operating activities	4,428)	4,593)	5,871)	2,240)	3,997)	2,964)
Interest expense paid, net of tax¹	615)	449)	464)	418)	400)	467)
Investment in property, plant and equipment	(2,828)	(3,122)	(2,502)	(2,383)	(2,856)	(2,956)
Proceeds from sale of property, plant and equipment	602)	602)	354)	703)	597)	1,094)
Free cash flow to the firm (FCFF)	2,817)	2,522)	4,187)	978)	2,138)	1,569)

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Hewlett Packard Enterprise Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Hewlett Packard Enterprise Co. FCFF decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Hewlett Packard Enterprise Co., interest paid, net of tax calculation

US$ in millions

12 months ended:	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	9.20%	0.90%	4.50%	27.10%	32.50%	23.30%
Interest Paid, Net of Tax
Interest expense paid, before tax	677)	453)	486)	574)	593)	609)
Less: Interest expense paid, tax²	62)	4)	22)	156)	193)	142)
Interest expense paid, net of tax	615)	449)	464)	418)	400)	467)

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

¹ See details »

² 2023 Calculation
Interest expense paid, tax = Interest expense paid × EITR
= 677 × 9.20% = 62

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Hewlett Packard Enterprise Co., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	33,459)
Free cash flow to the firm (FCFF)	2,817)
Valuation Ratio
EV/FCFF	11.88
Benchmarks
EV/FCFF, Competitors¹
Apple Inc.	33.39
Arista Networks Inc.	54.02
Cisco Systems Inc.	19.79
Super Micro Computer Inc.	41.98
EV/FCFF, Sector
Technology Hardware & Equipment	30.04
EV/FCFF, Industry
Information Technology	50.00

Based on: 10-K (reporting date: 2023-10-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Hewlett Packard Enterprise Co., historical EV/FCFF calculation, comparison to benchmarks

	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	30,358)	29,228)	29,171)	27,432)	30,844)	27,773)
Free cash flow to the firm (FCFF)²	2,817)	2,522)	4,187)	978)	2,138)	1,569)
Valuation Ratio
EV/FCFF³	10.78	11.59	6.97	28.04	14.42	17.70
Benchmarks
EV/FCFF, Competitors⁴
Apple Inc.	27.21	22.40	26.45	24.67	18.01	15.09
Arista Networks Inc.	39.01	89.96	38.46	28.99	15.17	—
Cisco Systems Inc.	10.98	13.55	15.50	10.47	12.58	—
Super Micro Computer Inc.	21.05	—	25.07	—	3.78	18.10
EV/FCFF, Sector
Technology Hardware & Equipment	24.85	21.85	25.07	22.39	16.86	—
EV/FCFF, Industry
Information Technology	34.38	27.28	28.22	24.29	19.88	—

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 30,358 ÷ 2,817 = 10.78

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Hewlett Packard Enterprise Co. EV/FCFF ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Hewlett Packard Enterprise Co. (NYSE:HPE)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical