Is Hewlett Packard Enterprise Co. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Hewlett Packard Enterprise Co. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics, with a P/E ratio of 8, an EV to EBITDA of 6.48, and a PEG ratio of 0.15, which are all below the industry averages. In comparison, Dell Technologies, Inc. has a P/E of 20.77, while HP, Inc. shows a P/E of 8.89, highlighting that Hewlett Packard Enterprise Co. is trading at a lower valuation relative to its peers.
Despite the overvaluation, Hewlett Packard Enterprise Co. has shown strong recent performance, with a 1-year return of 37.92% compared to the S&P 500's 17.14%, and a remarkable 5-year return of 165.68% against the S&P 500's 96.61%. This performance may suggest that the market has high expectations for future growth, although the current valuation metrics indicate that the stock may not be justified at its current price.