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Today we're going to take a look at the well-established Hewlett Packard Enterprise Company (NYSE:HPE). The company's stock saw a decent share price growth of 14% on the NYSE over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Hewlett Packard Enterprise’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Check out our latest analysis for Hewlett Packard Enterprise
What Is Hewlett Packard Enterprise Worth?
Great news for investors – Hewlett Packard Enterprise is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $29.44, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Hewlett Packard Enterprise’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What kind of growth will Hewlett Packard Enterprise generate?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. However, with a relatively muted profit growth of 6.9% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Hewlett Packard Enterprise, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since HPE is currently undervalued, it may be a great time to increase your holdings in the stock. 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 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 strength of its balance sheet, in order to make a well-informed investment decision.