DELL Intrinsic Value

Intrinsic Value of DELL Overview

Key Highlights:
As of Mar 11, 2025 DELL Relative Value is $221.5, which is undervalued by 141.8%, compared to current share price of $91.6.
As of Mar 11, 2025 DELL DCF Value is $138.3, which is undervalued by 51.0%, compared to current share price of $91.6.
Methodology
Price per share, $
Current share price
91.6

DELL Historical Intrinsic Value

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DELL Valuation Metrics

LTM
NTM
1Y Forward
2Y Forward
EV/Revenue
0.9x (as of Mar 11, 2025)
EV/Gross Profit
4.0x (as of Mar 11, 2025)
EV/EBIT
14.0x (as of Mar 11, 2025)
EV/EBITDA
16.4x (as of Mar 11, 2025)
EV/FCF
42.1x (as of Mar 11, 2025)
EV/OCF
18.8x (as of Mar 11, 2025)
P/Revenue
0.7x (as of Mar 11, 2025)
P/Gross Profit
3.0x (as of Mar 11, 2025)
P/EBIT
10.5x (as of Mar 11, 2025)
P/EBITDA
12.3x (as of Mar 11, 2025)
P/FCF
31.8x (as of Mar 11, 2025)
P/OCF
14.2x (as of Mar 11, 2025)
P/E
14.4x (as of Mar 11, 2025)
P/BV
(46.2x) (as of Mar 11, 2025)
PEG 1Y
0.3x (as of Mar 11, 2025)

DELL DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Jan'21 ActualJan'22 ActualFeb'23 ActualFeb'24 ActualJan'25 ActualFeb'25 EstimateFeb'26 EstimateFeb'27 EstimateFeb'28 EstimateFeb'29 EstimateFeb'30 EstimateFeb'31 EstimateFeb'32 EstimateFeb'33 EstimateFeb'34 EstimateFeb'35 Terminal
% growth
86,670.0
2.2%
101,197.0
16.8%
102,301.0
1.1%
88,425.0
(13.6%)
95,567.0
8.1%
96,283.0
0.7%
103,372.7
7.4%
111,495.1
7.9%
116,052.6
4.1%
120,781.9
4.1%
125,688.7
4.1%
130,779.2
4.1%
136,059.5
4.0%
141,535.9
4.0%
147,215.1
4.0%
153,103.7
4.0%
4,150.0
4.8%
4,911.0
4.9%
5,615.0
5.5%
5,211.0
5.9%
6,237.0
6.5%
4,971.4
5.2%
5,337.5
5.2%
5,756.9
5.2%
5,992.2
5.2%
6,236.4
5.2%
6,489.7
5.2%
6,752.6
5.2%
7,025.2
5.2%
7,308.0
5.2%
7,601.2
5.2%
7,905.3
5.2%
NOPAT
% effective tax rate
3,971.3
4.6%
4,097.6
4.0%
4,216.9
4.1%
4,283.3
4.8%
5,653.8
5.9%
4,506.6
4.7%
4,838.4
4.7%
5,218.6
4.7%
5,431.9
4.7%
5,653.3
4.7%
5,882.9
4.7%
6,121.2
4.7%
6,368.3
4.7%
6,624.7
4.7%
6,890.5
4.7%
7,166.1
4.7%
% of revenue
5,775.0
6.7%
4,551.0
4.5%
3,156.0
3.1%
3,303.0
3.7%
0.0
0.0%
2,189.0
2.3%
2,350.1
2.3%
2,534.8
2.3%
2,638.4
2.3%
2,745.9
2.3%
2,857.5
2.3%
2,973.2
2.3%
3,093.3
2.3%
3,217.8
2.3%
3,346.9
2.3%
3,480.8
2.3%
% of revenue
(2,082.0)
(2.4%)
(2,796.0)
(2.8%)
(3,003.0)
(2.9%)
(2,756.0)
(3.1%)
0.0
0.0%
(1,942.4)
(2.0%)
(2,085.4)
(2.0%)
(2,249.3)
(2.0%)
(2,341.3)
(2.0%)
(2,436.7)
(2.0%)
(2,535.7)
(2.0%)
(2,638.3)
(2.0%)
(2,744.9)
(2.0%)
(2,855.4)
(2.0%)
(2,969.9)
(2.0%)
(3,088.7)
(2.0%)
1,390.0
1.6%
1,922.0
1.9%
(3,188.0)
(3.1%)
782.0
0.9%
0.0
0.0%
(716.3)
(0.7%)
(769.1)
(0.7%)
(829.5)
(0.7%)
(863.4)
(0.7%)
(898.6)
(0.7%)
(935.1)
(0.7%)
(973.0)
(0.7%)
(1,012.3)
(0.7%)
(1,053.0)
(0.7%)
(1,095.2)
(0.7%)
(1,139.1)
(0.7%)
Free Cash Flow to Firm (FCFF)
% of revenue
9,049.8
10.4%
7,781.0
7.7%
1,212.5
1.2%
5,612.3
6.3%
5,653.8
5.9%
4,036.8
4.2%
4,334.0
4.2%
4,674.6
4.2%
4,865.7
4.2%
5,063.9
4.2%
5,269.7
4.2%
5,483.1
4.2%
5,704.5
4.2%
5,934.1
4.2%
6,172.2
4.2%
6,419.1
4.2%
% of FCFF used in calculation
100.0%
89.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
Discount factor
0.97
0.91
0.86
0.81
0.76
0.72
0.67
0.63
0.60
Discounted FCFF (DFCFF)
3,778.4
4,268.3
4,181.5
4,096.0
4,011.7
3,928.7
3,846.9
3,766.4
3,687.1

DELL DCF Value

DCF Value Calculation

as of Mar 11, 2025
Sum of DFCFF
% share of EV
35.6B
30.0%
Terminal Value (TV)
138.9B
Discounted TV
% share of EV
83.0B
70.0%
Total Debt
24.6B
Shares outstanding
700.5M
FX rate
1.0
52.2% undervalued

Equity Value Bridge

DELL Earnings Power Value and Enterprise Value

Annual
LTM
Enterprise Value Breakdown
EPV and MIVoG as % of EV

DELL Reverse DCF

Implied FCF growth
Implied Revenue growth

Reverse DCF Assumptions and Outputs

as of Jan 31, 2025
Long-Term growth rate
4.0%
FX rate
1.0
Last share price
103.6
Implied FCF growth 1-10Y
(1.1%)

Implied Free Cash Flow growth vs Historical average vs Industry growth

Competing with DELL Intrinsic Value

Overview
Ratings
Intrinsic Value
Valuation
Growth
Profitability
Health
Capital allocation
Momentum
Earnings
Dividends
Company name
Market Cap
Enterprise Value
Intrinsic Value
DCF Value
Relative value
Ben Graham Revised fair value
Peter Lynch fair value
Earnings Power Value (EPV), % of EV
Market-Implied Value of Growth (MIVoG), % of EV
Reverse DCF (implied FCF growth)
Reverse DCF (implied Revenue growth)
$64.1B
$85.1B
$181.2
97.9% undervalued
$139.4
52.0% undervalued
$223.1
143.6% undervalued
$278.8
204.5% undervalued
$187.4
104.6% undervalued
99.8%
0.2%
(1.1%)
(4.8%)
$99.9B
$91.6B
$55.9
29.3% overvalued
$80.7
2.0% undervalued
$31.2
60.6% overvalued
$33.3
57.9% overvalued
$32.0
59.5% overvalued
20.3%
79.7%
12.7%
14.0%
$27.4B
$35.4B
$89.5
212.8% undervalued
$86.1
201.0% undervalued
$93.0
224.9% undervalued
$78.6
174.5% undervalued
$54.9
91.7% undervalued
110.5%
(10.5%)
(11.0%)
(11.3%)
$23.4B
$23.8B
$73.5
79.9% undervalued
N/A
$73.5
79.9% undervalued
$84.9
108.0% undervalued
$90.6
121.8% undervalued
86.4%
13.6%
(100.0%)
(100.0%)
$18.7B
$18.4B
$98.5
8.4% undervalued
$105.3
16.0% undervalued
$91.8
0.9% undervalued
$280.4
208.4% undervalued
$167.8
84.5% undervalued
44.6%
55.4%
4.4%
3.4%
$18.3B
$17.5B
$86.2
0.9% overvalued
$64.3
26.0% overvalued
$108.1
24.3% undervalued
$1,775.9
1,941.9% undervalued
$845.4
872.1% undervalued
67.1%
32.9%
2.1%
2.8%
$16.0B
$14.8B
$21.0
56.8% overvalued
N/A
$21.0
56.8% overvalued
$116.7
140.0% undervalued
$51.3
5.5% undervalued
4.0%
96.0%
12.7%
10.9%
$14.3B
$19.4B
$73.5
75.9% undervalued
Negative
136.0% overvalued
$73.5
75.9% undervalued
Negative
3,256.2% overvalued
N/A
68.1%
31.9%
9.7%
(100.0%)
$14.0B
$12.6B
$94.5
2.5% undervalued
$110.2
20.0% undervalued
$78.7
14.7% overvalued
$95.8
3.9% undervalued
$43.8
52.5% overvalued
69.6%
30.4%
(5.2%)
(6.5%)
$3,943.2M
$3,620.6M
$2.5
86.8% overvalued
N/A
$2.5
86.8% overvalued
$31.2
67.0% undervalued
$19.3
3.4% undervalued
(22.1%)
122.1%
(100.0%)
(100.0%)
$1,799.6M
$1,740.7M
$0.4
94.7% overvalued
N/A
$0.4
94.7% overvalued
$62.8
680.2% undervalued
$55.1
584.5% undervalued
(20.4%)
120.4%
(100.0%)
(100.0%)

Intrinsic Valuation Tools

Wondering how to calculate intrinsic value of a stock? Use our intrinsic value tools to simplify complex valuation concepts and save time.

FAQ

What is the DCF value of Dell Technologies Inc. (DELL)?

As of today, DCF Value of Dell Technologies Inc. is $139.4, which is undervalued by 52.2%, compared to the current market share price of $91.6

How was the DCF Value calculated?

Step 1: Calculating Intrinsic Enterprise Value DCF Value was calculated by estimating Dell Technologies Inc. future free cash flow and then discounting it, using a chosen discount rate to determine Intrinsic Enterprise Value of $0.0B Step 2: Balance Sheet Adjustments Intrinsic Equity Value is calculated by subtracting Balance Sheet items (Cash & Equivalents, Short-term investments and Total Debt) from previously calculated Intrinsic Enterprise Value. This Intrinsic Equity Value is then divided by the total number of outstanding shares of 0 to determine DCF Value of $139.4

What is the Relative value of Dell Technologies Inc. (DELL)?

As of today, Relative Value of Dell Technologies Inc. is $223.1, which is undervalued by 143.6%, compared to the current market share price of $91.6

How was the Relative Value calculated?

Relative Value was calculated by applying various valuation multiples (EV/Revenue, EV/EBITDA, P/E etc.) to Dell Technologies Inc. financials to determine Relative Value of $223.1

What is Dell Technologies Inc. (DELL) discount rate?

Dell Technologies Inc. current Cost of Equity is 8.4%, while its WACC stands at 6.2%. Cost of Equity is used to value equity, while discounting free cash flow to equity holders (such as Net Income or Free Cash Flow to Equity). Weighted Average Cost of Capital (WACC) is used to value the entire firm, while discounting cash flows available to both debt and equity holders (NOPAT or Free Cash Flow to the Firm)

How is Cost of Equity for Dell Technologies Inc. (DELL) calculated?

The Cost of Equity represents the return a company must offer investors to compensate for the risk of investing in its stock. It's calculated using the Capital Asset Pricing Model (CAPM), which combines the risk-free rate, the stock's beta, and the equity risk premium (ERP). This model considers the inherent risk of investing in the stock compared to a risk-free investment and the market's overall risk. Cost of Equity = Risk-Free Rate + Beta x Effective Risk Premium (ERP) 8.4% = 4.3% + 0.9 x 4.6%

How is WACC for Dell Technologies Inc. (DELL) calculated?

WACC, or Weighted Average Cost of Capital, is a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets. It is a critical measure in financial analysis for valuing a company's entire operations. The WACC formula combines the costs of equity and debt, weighted by their respective proportions in the company's capital structure. WACC = Cost of Equity x Equity Weight in Total Capital + Cost of Debt x (1 - Effective Tax Rate) Debt Weight in Total Capital 6.2% = 8.4% x 27.7% + 0.8% x (1 - 22.3%) x 72.3%