Discounted Cash Flow (DCF) Analysis Levered

Hewlett Packard Enterprise Company (HPE)

$16.01

-0.13 (-0.81%)
All numbers are in Millions, Currency in USD
Stock DCF: 10.91 | 16.01 | overvalue

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 30,85229,13526,98227,78428,49627,967.4027,448.6026,939.4226,439.7025,949.24
Revenue (%)
Operating Cash Flow 2,9643,9972,2405,8714,5933,852.613,781.143,7113,642.163,574.60
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 81,141-1433,3691,4711,157.851,136.371,115.291,094.601,074.30

Weighted Average Cost Of Capital

Share price $ 16.01
Beta 1.218
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 9.302
Total Debt 13,484
Total Equity 21,293.30
Total Capital 34,777.30
Debt Weighting 38.77
Equity Weighting 61.23
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 30,85229,13526,98227,78428,49627,967.4027,448.6026,939.4226,439.7025,949.24
Operating Cash Flow 2,9643,9972,2405,8714,5933,852.613,781.143,7113,642.163,574.60
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 81,141-1433,3691,4711,157.851,136.371,115.291,094.601,074.30
WACC
PV LFCF 1,089.951,006.99930.35859.54794.13
SUM PV LFCF 4,680.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.23
Free cash flow (t + 1) 1,095.78
Terminal Value 25,905.08
Present Value of Terminal Value 19,149.13

Intrinsic Value

Enterprise Value 23,830.09
Net Debt 9,321
Equity Value 14,509.09
Shares Outstanding 1,330
Equity Value Per Share 10.91