HPENEUTRAL

EV/EBITDA

13.1x

Updated 248h ago

Sector Performance

47th percentile

HPE

13.1x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

Hewlett Packard Enterprise's current EV/EBITDA of 13.1x means the company is valued at 13.1 times its earnings before interest, taxes, depreciation, and amortization — a common metric used to compare corporate value across companies.

This sits below the sector median of 13.9x, placing HPE in the 46th percentile among its peers, indicating a valuation slightly lower than the typical rival. The metric has been decreasing over the last eight quarters, with a year-over-year drop of 29.8% and a quarter-over-quarter decline of 1.7%. A below-median valuation combined with a falling trend can suggest either that earnings are growing faster than the enterprise value or that the market is assigning less value to each unit of earnings — both of which reduce the premium an investor pays. This setup may lower valuation risk but does not signal a clear mispricing given the neutral trend. The current EV/EBITDA level and its steady decrease align with the overall NEUTRAL verdict on HPE, as the metric offers neither a compelling undervaluation nor an alarming overvaluation.

Frequently Asked Questions

What does the EV/EBITDA tell investors about HPE?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are HPE's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.