Is Hewlett Packard Enterprise Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Hewlett Packard Enterprise Co. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 8, which is lower than the peer average of approximately 10.09, and an EV to EBITDA ratio of 6.48, also below the industry average. Additionally, the PEG ratio stands at a remarkably low 0.15, suggesting that the stock may not be priced appropriately given its growth prospects.
In comparison to its peers, Dell Technologies, Inc. has a much higher P/E ratio of 20.77, while HP, Inc. shows a P/E of 8.89, indicating that Hewlett Packard Enterprise Co. is trading at a similar level to HP but significantly lower than Dell. Despite a strong historical performance with a 5-year return of 142.19%, the recent stock performance has lagged behind the S&P 500, with a year-to-date return of 7.54% compared to the index's 13.30%. This underperformance reinforces the notion that the stock may be overvalued in the current market context.