Is Hewlett Packard Enterprise Co. overvalued or undervalued?

As of 3 June 2025, Hewlett Packard Enterprise Co. has moved from a fair to very expensive valuation grade, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 8, which is lower than the industry average, but its EV to EBITDA ratio of 6.48 suggests a higher valuation compared to peers. The PEG ratio stands at an exceptionally low 0.15, which typically indicates undervaluation, yet the overall assessment points towards overvaluation.
In comparison to its peers, Zebra Technologies Corp. has a much higher P/E of 36.08, while Insight Enterprises, Inc. has a P/E of 21.83, both suggesting that Hewlett Packard Enterprise Co. is not only lagging in growth potential but also facing a premium valuation despite its lower profitability metrics, such as a ROCE of 7.14% and ROE of 13.10%. The company's recent stock performance has underperformed against the S&P 500, with a year-to-date return of -16.58% compared to the index's 2.44%, reinforcing the notion that the stock is currently overvalued.