Discounted Cash Flow (DCF) Analysis Levered
Hewlett Packard Enterprise Company (HPE)
$15.93
+0.21 (+1.34%)
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 | $ 15.93 |
|---|---|
| Beta | 1.249 |
| Diluted Shares Outstanding | 1,322 |
| Cost of Debt | |
| Tax Rate | 0.91 |
| After-tax Cost of Debt | 1.38% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.391 |
| Total Debt | 13,484 |
| Total Equity | 21,059.46 |
| Total Capital | 34,543.46 |
| Debt Weighting | 39.03 |
| Equity Weighting | 60.97 |
| 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 | 1,089.64 | 1,006.42 | 929.56 | 858.57 | 793.01 | |||||
| SUM PV LFCF | 4,677.21 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.26 |
| Free cash flow (t + 1) | 1,095.78 |
| Terminal Value | 25,722.65 |
| Present Value of Terminal Value | 18,987.45 |
Intrinsic Value
| Enterprise Value | 23,664.66 |
|---|---|
| Net Debt | 9,321 |
| Equity Value | 14,343.66 |
| Shares Outstanding | 1,322 |
| Equity Value Per Share | 10.85 |