Price to Sales (P/S)
since 2015
Calculation
Hewlett Packard Enterprise Co., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net revenue1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 22, 2023 | 0.76 | = | 17.09 | ÷ | 22.41 | 22.41 | = | 29,135 | ÷ | 1,300,000,000 | |
| Dec 8, 2022 | 0.73 | = | 16.29 | ÷ | 22.23 | 22.23 | = | 28,496 | ÷ | 1,281,816,851 | |
| Dec 10, 2021 | 0.71 | = | 15.21 | ÷ | 21.48 | 21.48 | = | 27,784 | ÷ | 1,293,439,907 | |
| Dec 10, 2020 | 0.58 | = | 12.12 | ÷ | 20.86 | 20.86 | = | 26,982 | ÷ | 1,293,499,810 | |
| Dec 13, 2019 | 0.71 | = | 16.03 | ÷ | 22.53 | 22.53 | = | 29,135 | ÷ | 1,292,925,893 | |
| Dec 12, 2018 | 0.66 | = | 14.64 | ÷ | 22.06 | 22.06 | = | 30,852 | ÷ | 1,398,678,425 | |
| Dec 15, 2017 | 0.80 | = | 14.41 | ÷ | 18.11 | 18.11 | = | 28,871 | ÷ | 1,593,885,581 | |
| Dec 15, 2016 | 0.79 | = | 23.73 | ÷ | 30.11 | 30.11 | = | 50,123 | ÷ | 1,664,817,197 | |
| Dec 17, 2015 | 0.48 | = | 14.31 | ÷ | 29.90 | 29.90 | = | 52,107 | ÷ | 1,742,520,126 |
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), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Hewlett Packard Enterprise Co. Annual Report.
The Price to Sales (P/S) ratio has exhibited notable volatility between 2015 and 2023, remaining consistently below 1.0 throughout the entire period. This valuation pattern indicates that the market has consistently priced the company at a fraction of its annual revenue.
- P/S Ratio Volatility and Recovery
- The P/S ratio began at 0.48 in 2015 and rose sharply to peak at 0.80 in 2017. A period of instability followed, with the ratio declining to 0.66 in 2018 and hitting a subsequent low of 0.58 in 2020. Since 2020, a consistent upward trend is observed, with the ratio increasing incrementally each year to reach 0.76 by December 2023.
- Sales per Share Performance
- A significant contraction in sales per share occurred between 2016 and 2017, where the value dropped from 30.11 to 18.11. Following this decline, a sustained and steady recovery phase is evident, as sales per share grew annually from 2018 onward, ending the period at 22.41 in 2023.
- Share Price Influence
- The share price experienced significant fluctuations, reaching a maximum of 23.73 in 2016 and a minimum of 12.12 in 2020. The expansion of the P/S ratio from 2020 to 2023 is driven by a combined increase in both share price and sales per share, reflecting a gradual improvement in market valuation relative to revenue generation.
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Comparison to Competitors
Hewlett Packard Enterprise Co., P/S, long-term trends, comparison to competitors
| Hewlett Packard Enterprise Co. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|---|
| Dec 22, 2023 | 0.76 | 7.17 | 14.17 | 4.04 | 0.28 | 2.01 | 1.90 |
| Dec 8, 2022 | 0.73 | 6.28 | 9.89 | 3.62 | 0.40 | 3.62 | 0.70 |
| Dec 10, 2021 | 0.71 | 6.72 | 13.57 | 4.96 | 0.72 | 3.61 | 0.51 |
| Dec 10, 2020 | 0.58 | 6.74 | 10.24 | 3.52 | 0.31 | 3.76 | 0.43 |
| Dec 13, 2019 | 0.71 | 4.25 | 7.09 | 3.96 | 0.47 | 2.65 | 0.32 |
| Dec 12, 2018 | 0.66 | 3.60 | 9.29 | 4.38 | — | 3.46 | 0.33 |
| Dec 15, 2017 | 0.80 | 3.86 | 11.20 | 3.28 | — | 3.44 | 0.40 |
| Dec 15, 2016 | 0.79 | 2.86 | 7.49 | 3.20 | — | 2.34 | 0.47 |
| Dec 17, 2015 | 0.48 | 2.85 | 5.52 | 2.71 | — | 1.20 | 0.65 |
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), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31).
Comparison to Sector (Technology Hardware & Equipment)
Hewlett Packard Enterprise Co., P/S, long-term trends, comparison to sector (technology hardware & equipment)
| Hewlett Packard Enterprise Co. | Technology Hardware & Equipment | |
|---|---|---|
| Dec 22, 2023 | 0.76 | 5.57 |
| Dec 8, 2022 | 0.73 | 4.94 |
| Dec 10, 2021 | 0.71 | 5.44 |
| Dec 10, 2020 | 0.58 | 4.92 |
| Dec 13, 2019 | 0.71 | 3.35 |
| Dec 12, 2018 | 0.66 | 3.72 |
| Dec 15, 2017 | 0.80 | 3.77 |
| Dec 15, 2016 | 0.79 | 2.92 |
| Dec 17, 2015 | 0.48 | 2.81 |
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), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31).
Comparison to Industry (Information Technology)
Hewlett Packard Enterprise Co., P/S, long-term trends, comparison to industry (information technology)
| Hewlett Packard Enterprise Co. | Information Technology | |
|---|---|---|
| Dec 22, 2023 | 0.76 | 7.31 |
| Dec 8, 2022 | 0.73 | 6.01 |
| Dec 10, 2021 | 0.71 | 6.98 |
| Dec 10, 2020 | 0.58 | 6.11 |
| Dec 13, 2019 | 0.71 | 4.62 |
| Dec 12, 2018 | 0.66 | 4.31 |
| Dec 15, 2017 | 0.80 | 4.18 |
| Dec 15, 2016 | 0.79 | 3.46 |
| Dec 17, 2015 | 0.48 | 3.03 |
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), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31).