HPENEUTRAL

HPE EV/EBITDA Analysis

15.8x

Higher than 17% of TECHNOLOGY sector peers

Updated 149h ago·SEC filings & market data

Key Takeaway

HPE trades at 14.7x EV/EBITDA, meaning its enterprise value is 14.7 times its earnings before interest, taxes, depreciation, and amortization — a common measure of how expensive a company is relative to its operating cash generation.

Sector Performance

17th percentile

HPE

15.8x

Sector Median

24.3x

Sector Avg

29.8x

Prior Period

14.7x(Aug 2026)

↓ Declining

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Deep Analysis

That multiple sits far below the sector median of 27.9x, placing HPE in the 10th percentile among technology peers, so it is cheap on a relative basis. The metric is increasing, up 10.3% year-over-year and 8.1% quarter-over-quarter, following an upward path over the last eight quarters. A low but rising multiple suggests limited downside from valuation if the trend reverses, though continued expansion could erode the current discount and heighten sensitivity to earnings misses. This combination of a below-median level with an increasing trend supports the balanced risk profile behind the overall NEUTRAL verdict. The metric does not contradict that neutral stance; rather, it aligns with a stock that is attractively priced but no longer as undervalued as before.

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.

How does HPE's EV/EBITDA compare to its sector?

HPE's EV/EBITDA of 15.8x compares to a TECHNOLOGY sector median of 24.3x, placing it in the 17th percentile.

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

The closest TECHNOLOGY peers by EV/EBITDA include: CSCO (24.3x), TXN (25.6x), DELL (21.5x), ORCL (18.3x), IBM (16.9x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

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.