Hewlett Packard Enterprise Co., FCFE 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)
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)
Short-term borrowings with original maturities less than 90 days, net	(47)	100)	(36)	(9)	(53)	5)
Proceeds from debt, net of issuance costs	4,725)	3,296)	3,022)	7,007)	3,517)	2,457)
Payment of debt	(4,887)	(3,992)	(5,465)	(5,099)	(2,203)	(4,138)
Cash settlement for derivative hedging debt	(7)	(8)	—)	—)	—)	—)
Free cash flow to equity (FCFE)	1,986)	1,469)	1,244)	2,459)	2,999)	(574)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Hewlett Packard Enterprise Co. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Hewlett Packard Enterprise Co. FCFE increased from 2021 to 2022 and from 2022 to 2023.

Hewlett Packard Enterprise Co., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	1,299,673,270
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,986)
FCFE per share	1.53
Current share price (P)	19.48
Valuation Ratio
P/FCFE	12.75
Benchmarks
P/FCFE, Competitors¹
Apple Inc.	33.67
Arista Networks Inc.	60.12
Cisco Systems Inc.	7.75
Super Micro Computer Inc.	46.31
P/FCFE, Sector
Technology Hardware & Equipment	34.80
P/FCFE, Industry
Information Technology	51.66

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

¹ Click competitor name to see calculations.

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

Hewlett Packard Enterprise Co., historical P/FCFE calculation, comparison to benchmarks

	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020	Oct 31, 2019	Oct 31, 2018
No. shares of common stock outstanding¹	1,300,000,000	1,281,816,851	1,293,439,907	1,293,499,810	1,292,925,893	1,398,678,425
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,986)	1,469)	1,244)	2,459)	2,999)	(574)
FCFE per share³	1.53	1.15	0.96	1.90	2.32	-0.41
Share price^1, 4	17.09	16.29	15.21	12.12	16.03	14.64
Valuation Ratio
P/FCFE⁵	11.19	14.21	15.81	6.38	6.91	—
Benchmarks
P/FCFE, Competitors⁶
Apple Inc.	30.63	22.26	23.27	24.40	21.64	—
Arista Networks Inc.	41.51	96.71	42.05	32.98	18.04	—
Cisco Systems Inc.	12.84	17.18	21.02	38.82	14.85	—
Super Micro Computer Inc.	41.38	139.27	13.81	—	7.83	108.50
P/FCFE, Sector
Technology Hardware & Equipment	27.96	22.10	23.19	25.31	20.14	—
P/FCFE, Industry
Information Technology	33.47	26.69	27.52	23.46	19.14	—

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 Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,986,000,000 ÷ 1,300,000,000 = 1.53

⁴ Closing price as at the filing date of Hewlett Packard Enterprise Co. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 17.09 ÷ 1.53 = 11.19

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Hewlett Packard Enterprise Co. P/FCFE ratio decreased from 2021 to 2022 and from 2022 to 2023.

Hewlett Packard Enterprise Co. (NYSE:HPE)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical