Discounted Cash Flow (DCF) Analysis Levered
Hewlett Packard Enterprise Company (HPE)
$14.23
-0.04 (-0.28%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 30,852 | 29,135 | 26,982 | 27,784 | 28,496 | 27,967.40 | 27,448.60 | 26,939.42 | 26,439.70 | 25,949.24 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,964 | 3,997 | 2,240 | 5,871 | 4,593 | 3,852.61 | 3,781.14 | 3,711 | 3,642.16 | 3,574.60 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -2,956 | -2,856 | -2,383 | -2,502 | -3,122 | -2,694.76 | -2,644.77 | -2,595.71 | -2,547.56 | -2,500.30 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 8 | 1,141 | -143 | 3,369 | 1,471 | 1,157.85 | 1,136.37 | 1,115.29 | 1,094.60 | 1,074.30 |
Weighted Average Cost Of Capital
Share price | $ 14.23 |
---|---|
Beta | 1.249 |
Diluted Shares Outstanding | 1,330 |
Cost of Debt | |
Tax Rate | 0.91 |
After-tax Cost of Debt | 1.38% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 9.277 |
Total Debt | 13,484 |
Total Equity | 18,925.90 |
Total Capital | 32,409.90 |
Debt Weighting | 41.60 |
Equity Weighting | 58.40 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 30,852 | 29,135 | 26,982 | 27,784 | 28,496 | 27,967.40 | 27,448.60 | 26,939.42 | 26,439.70 | 25,949.24 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,964 | 3,997 | 2,240 | 5,871 | 4,593 | 3,852.61 | 3,781.14 | 3,711 | 3,642.16 | 3,574.60 |
Capital Expenditure | -2,956 | -2,856 | -2,383 | -2,502 | -3,122 | -2,694.76 | -2,644.77 | -2,595.71 | -2,547.56 | -2,500.30 |
Free Cash Flow | 8 | 1,141 | -143 | 3,369 | 1,471 | 1,157.85 | 1,136.37 | 1,115.29 | 1,094.60 | 1,074.30 |
WACC | ||||||||||
PV LFCF | 816.70 | 756.25 | 700.28 | 648.44 | 600.45 | |||||
SUM PV LFCF | 4,711.17 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 5.99 |
Free cash flow (t + 1) | 1,095.78 |
Terminal Value | 27,463.28 |
Present Value of Terminal Value | 20,531.84 |
Intrinsic Value
Enterprise Value | 25,243.02 |
---|---|
Net Debt | 9,321 |
Equity Value | 15,922.02 |
Shares Outstanding | 1,330 |
Equity Value Per Share | 11.97 |