Today we're going to take a look at the well-established Hewlett Packard Enterprise Company (NYSE:HPE). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$17.46 at one point, and dropping to the lows of US$14.76. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Hewlett Packard Enterprise's current trading price of US$14.76 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hewlett Packard Enterprise’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Hewlett Packard Enterprise worth?
Good news, investors! Hewlett Packard Enterprise is still a bargain right now. According to my valuation, the intrinsic value for the stock is $23.68, but it is currently trading at US$14.76 on the share market, meaning that there is still an opportunity to buy now. However, given that Hewlett Packard Enterprise’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Hewlett Packard Enterprise?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 70% over the next couple of years, the future seems bright for Hewlett Packard Enterprise. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since HPE is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on HPE for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HPE. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Hewlett Packard Enterprise. You can find everything you need to know about Hewlett Packard Enterprise in the latest infographic research report. If you are no longer interested in Hewlett Packard Enterprise, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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