Price to FCFE (P/FCFE)
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Operating Profit Margin since 2015
- Return on Assets (ROA) since 2015
- Total Asset Turnover since 2015
- Analysis of Debt
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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).
- Net cash provided by operating activities
- The net cash provided by operating activities showed variability over the six-year period. Beginning at $2,964 million in 2018, it increased significantly to a peak of $5,871 million in 2021. In subsequent years, it declined to $4,593 million in 2022 and further slightly decreased to $4,428 million in 2023. Despite the decline after 2021, the cash flow from operations in 2023 remains well above the levels seen in the initial years, indicating strong operational cash generation capacity overall.
- Free cash flow to equity (FCFE)
- Free cash flow to equity demonstrated a notable turnaround during the period. Starting with a negative figure of -$574 million in 2018, FCFE rose sharply to $2,999 million in 2019 and remained positive throughout the subsequent years. Although volatility is observed, with a decrease to $1,244 million in 2021, it grew again to $1,469 million in 2022 and further to $1,986 million in 2023. This trend reflects improving capacity to generate free cash that can be returned to shareholders, supported by operational cash flows and controlled capital expenditures or changes in working capital.
- Overall analysis
- The trends indicate a generally strong cash generation ability from operations, peaking in 2021 before experiencing some contraction. However, the free cash flow available to equity holders shows a recovery from a negative starting point and maintains a positive trajectory in the latter years. This suggests enhanced financial flexibility and potential for shareholder returns from 2019 onwards, albeit with some fluctuations in magnitude. The data implies that the company has navigated challenges effectively to maintain solid cash flow health.
Price to FCFE Ratio, Current
Hewlett Packard Enterprise Co., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Apple Inc. | |
| Arista Networks Inc. | |
| Cisco Systems Inc. | |
| Dell Technologies Inc. | |
| Super Micro Computer Inc. | |
| P/FCFE, Sector | |
| Technology Hardware & Equipment | |
| P/FCFE, Industry | |
| Information Technology | |
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 | |||||||
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | |||||||
| FCFE per share3 | |||||||
| Share price1, 4 | |||||||
| Valuation Ratio | |||||||
| P/FCFE5 | |||||||
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Apple Inc. | |||||||
| Arista Networks Inc. | |||||||
| Cisco Systems Inc. | |||||||
| Dell Technologies Inc. | |||||||
| Super Micro Computer Inc. | |||||||
| P/FCFE, Sector | |||||||
| Technology Hardware & Equipment | |||||||
| P/FCFE, Industry | |||||||
| Information Technology | |||||||
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
= ÷ =
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
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited fluctuations over the six-year period. It initially increased from $14.64 in 2018 to $16.03 in 2019 but declined to $12.12 in 2020. From 2020 onwards, the share price showed a steady recovery, reaching $17.09 in 2023, the highest in the given timeframe.
- FCFE per Share Trend
- Free Cash Flow to Equity (FCFE) per share demonstrated a significant improvement from a negative value of -$0.41 in 2018 to positive territory in 2019 at $2.32. Subsequently, FCFE per share declined to $1.90 in 2020, then dropped further to $0.96 in 2021. However, it rebounded during the last two periods to $1.15 in 2022 and $1.53 in 2023, indicating a recovery in cash generation available to equity holders.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio data starts from 2019, with a value of 6.91, which slightly decreased to 6.38 in 2020. Thereafter, the ratio increased significantly in 2021 to 15.81 before declining to 14.21 in 2022 and further to 11.19 in 2023. The elevated ratio values in 2021-2023 suggest a higher market valuation relative to free cash flows compared to earlier years.
- General Analysis
- The data indicates a pattern of recovery and volatility. Despite the initial negative cash flow in 2018, the company improved its FCFE substantially by 2019. The decline in both FCFE and share price in 2020 and 2021 may reflect adverse operational or market conditions during that period. The subsequent recovery in both metrics points to improved financial performance. Meanwhile, the P/FCFE ratio's sharp rise in 2021 suggests that market expectations increased significantly, potentially reflecting anticipated growth or market optimism, despite the lower FCFE per share in that year. The decline in the ratio after 2021 implies a normalization of valuations relative to cash flows.