Question 1

What is Hewlett Packard Enterprise Company's WACC?

Accepted Answer

Hewlett Packard Enterprise Company (HPE) has a Weighted Average Cost of Capital (WACC) of 7.54%. This is calculated using a Cost of Equity of 9.23% (via CAPM with a beta of 1.24) and a pre-tax Cost of Debt of 4.90%, with an equity weight of 61.03% in the capital structure.

Question 2

Is Hewlett Packard Enterprise Company's WACC high or low?

Accepted Answer

Hewlett Packard Enterprise Company's WACC of 7.54% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Hewlett Packard Enterprise Company's WACC calculated?

Accepted Answer

Hewlett Packard Enterprise Company's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.23% is derived from the CAPM model using a beta of 1.24. The pre-tax Cost of Debt (Rd) is 4.90%. The capital structure is 61.03% equity and 38.97% debt.

Hewlett Packard Enterprise Company (HPE) — WACC 分析

WACC 构成

解读

Hewlett Packard Enterprise Company（HPE）WACC：7.54%

WACC计算器

Hewlett Packard Enterprise Company（HPE） WACC 解读

HPE 公司分析

HPE DCF 估值

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