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, an EV to EBITDA of 6.48, and a PEG ratio of 0.15. In comparison to peers, Dell Technologies, Inc. has a higher P/E ratio of 20.77, while HP, Inc. has a similar P/E of 8.89, further supporting the notion of Hewlett Packard Enterprise being overpriced in its current market position.
Recent stock performance shows that Hewlett Packard Enterprise has underperformed the S&P 500 over the past week and month, with returns of -5.90% and -7.16%, respectively, while the S&P 500 gained 1.70% and 0.96%. However, the company has shown stronger performance over the longer term, with a 5-year return of 142.19% compared to the S&P 500's 91.29%. This mixed performance reinforces the conclusion that while the company has had strong historical returns, its current valuation metrics suggest it is now overvalued.