Discounted Cash Flow

Hewlett Packard Enterprise Co.

HPE · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $50.1b $3.2b $5.0b 6.3% $1.84
2017 $28.9b (-42.4%) $344.0m (-89.1%) $889.0m (-82.1%) 1.2% (-81.1%) $0.21 (-88.6%)
2018 $30.9b (6.9%) $1.9b (454.7%) $1.9b (110.3%) 6.2% (419.0%) $1.25 (495.2%)
2019 $29.1b (-5.6%) $1.0b (-45.0%) $3.4b (81.8%) 3.6% (-41.8%) $0.78 (-37.6%)
2020 $27.0b (-7.4%) $-322.0m (-130.7%) $1.5b (-54.8%) -1.2% (-133.1%) $-0.25 (-132.1%)
2021 $27.8b (3.0%) $3.4b (1164.3%) $5.5b (258.9%) 12.3% (1133.6%) $2.62 (1148.0%)
2022 $28.5b (2.6%) $868.0m (-74.7%) $1.5b (-73.3%) 3.0% (-75.3%) $0.67 (-74.4%)
2023 $29.1b (2.2%) $2.0b (133.3%) $1.6b (8.8%) 7.0% (128.2%) $1.56 (132.8%)
2024 $30.1b (3.4%) $2.6b (27.4%) $2.0b (23.4%) 8.6% (23.2%) $1.95 (25.0%)
2025 $34.3b (13.8%) $57.0m (-97.8%) $627.0m (-68.2%) 0.2% (-98.1%) $-0.04 (-102.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model