Hewlett Packard Enterprise Co (HPE) is overvalued and Lumentum Holdings Inc (LITE) is overvalued.
Both trade above our estimate of their intrinsic value. LITE is the closer of the two: -1899%, against -5467% for HPE.
Values as of the 22 Sept 2026 close.
Its through-the-cycle earnings (4.2% median margin), capitalised at 10.4% with no growth, values the shares at $1.10; the price of $61.03 is 5467% above that value.
Leak Score 33/100 on 10 of 12 signals
Discounting its cash flows at 11.8% (average of 2 methods) values the shares at $47.31; the price of $945.67 is 1899% above that value.
Leak Score 41/100 on 8 of 12 signals
| Metric | HPE | LITE |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $61.03 | $945.67 |
| Intrinsic value | $1.10 | $47.31 |
| Margin of safety | -5467% | -1899% |
| Leak Score | 33/100 (10/12) | 41/100 (8/12) |
| Market cap | $81.0B | $84.8B |
| Revenue growth, 5 years | 5.0% | 11.6% |
| Operating margin | 8.0% | 17.9% |
| Net margin | 6.4% | -230.1% |
| Return on equity | 11.0% | -240.0% |
| Debt to equity | 0.76 | 0.36 |
| P/E | 31.8x | — |
| Forward P/E | 13.3x | 27.9x |
| P/B | 3.1x | 18.0x |
| Dividend yield | 0.9% | — |