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 |