Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Hewlett Packard Enterprise Co., FCFE calculation
US$ in millions
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).
An analysis of the cash flow trajectory from 2018 to 2023 reveals a period of volatility in both operating cash flow and free cash flow to equity (FCFE), characterized by a significant recovery in the early part of the period and fluctuating capital allocation patterns in later years.
- Operating Cash Flow Trends
- Net cash provided by operating activities exhibited significant variance, ranging from a low of US$ 2,240 million in 2020 to a peak of US$ 5,871 million in 2021. Following this peak, a moderate decline is observed, with the value settling at US$ 4,428 million by 2023. The general trend indicates a consistent capacity to generate substantial cash from core operations, despite intermittent fluctuations.
- Free Cash Flow to Equity (FCFE) Dynamics
- FCFE underwent a substantial reversal between 2018 and 2019, shifting from a deficit of US$ 574 million to a surplus of US$ 2,999 million. While FCFE remained positive for the remainder of the analyzed period, it experienced a downward trend through 2021, reaching US$ 1,244 million, before demonstrating a steady recovery to US$ 1,986 million by 2023.
- Comparative Analysis of Cash Flow Drivers
- A notable divergence occurred in 2021, where operating cash flow reached its six-year maximum while FCFE dropped to one of its lowest positive levels. This inverse relationship suggests an increase in capital expenditures or net debt repayments during that fiscal year. Conversely, from 2021 to 2023, FCFE trended upward even as operating cash flow moderately declined, indicating a shift toward improved equity-based cash retention or reduced capital intensity.
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Price to FCFE Ratio, Current
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$) | |
| Free cash flow to equity (FCFE) (in millions) | 1,986) |
| FCFE per share | 1.53 |
| Current share price (P) | 19.48 |
| Valuation Ratio | |
| P/FCFE | 12.75 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Apple Inc. | 42.48 |
| Arista Networks Inc. | 47.21 |
| Cisco Systems Inc. | 26.61 |
| Dell Technologies Inc. | 13.40 |
| Lumentum Holdings Inc. | 282.58 |
| Super Micro Computer Inc. | — |
| P/FCFE, Sector | |
| Technology Hardware & Equipment | 51.42 |
| P/FCFE, Industry | |
| Information Technology | 70.99 |
Based on: 10-K (reporting date: 2023-10-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Hewlett Packard Enterprise Co., historical P/FCFE calculation, comparison to benchmarks
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,300,000,000 | 1,281,816,851 | 1,293,439,907 | 1,293,499,810 | 1,292,925,893 | 1,398,678,425 | |
| Selected Financial Data (US$) | |||||||
| 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 price1, 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 | — | — | — | |
| Arista Networks Inc. | 41.51 | 96.72 | 42.05 | — | — | — | |
| Cisco Systems Inc. | 12.84 | 17.18 | 21.02 | — | — | — | |
| Dell Technologies Inc. | 9.06 | 33.54 | 14.15 | — | — | — | |
| Lumentum Holdings Inc. | 6.92 | 5.06 | 9.31 | — | — | — | |
| Super Micro Computer Inc. | 41.38 | 139.27 | 13.81 | — | — | — | |
| P/FCFE, Sector | |||||||
| Technology Hardware & Equipment | 27.33 | 22.05 | 22.76 | — | — | — | |
| P/FCFE, Industry | |||||||
| Information Technology | 33.12 | 26.68 | 27.39 | — | — | — | |
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.
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.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits significant volatility over the analyzed six-year period, characterized by an initial period of low valuation followed by a sharp spike and a subsequent gradual moderation. The absence of a ratio in 2018 is attributable to negative free cash flow to equity, indicating a period where cash outflows exceeded inflows.
- Share Price Trends
- The share price experienced a period of instability between 2018 and 2020, reaching a low of 12.12 US$ in 2020. Following this trough, a consistent upward trajectory was observed, with the price rising steadily to 17.09 US$ by October 31, 2023.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share transitioned from a negative value of -0.41 US$ in 2018 to a peak of 2.32 US$ in 2019. A downward trend followed, reaching a low of 0.96 US$ in 2021, before recovering to 1.53 US$ by the end of the period in 2023.
- P/FCFE Ratio Analysis
- The P/FCFE ratio remained relatively low in 2019 (6.91) and 2020 (6.38). A substantial increase occurred in 2021, where the ratio peaked at 15.81. This sharp expansion was primarily driven by the contraction in FCFE per share rather than an equivalent surge in share price. Since 2021, the ratio has trended downward, settling at 11.19 by 2023, suggesting a normalization of the company's market valuation relative to its capacity to generate cash for equity holders.
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