Dell Technologies Inc. (DELL) Intrinsic Value & DCF Valuation
Computer Hardware · NYSE
Current Price
$395.57
Intrinsic Value
$707.69
+44.1% margin of safety
What Is Dell Technologies Inc.'s Intrinsic Value?
As of 2026-06-12, our base-case DCF model estimates the intrinsic value of Dell Technologies Inc. (DELL) at $707.69 per share, compared with a market price of $395.57, a margin of safety of +44.1%. The base case assumes 20.0% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $592.78 to $837.22. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How our DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Dell Technologies Inc. (DELL) Undervalued?
At the current price of $395.57, DELL trades well below our base-case intrinsic value estimate, a margin of safety above 30%. By this model the stock looks undervalued, but verify the growth assumptions match your own view before acting.
COMPETITIVE MOAT
↑Strong Enterprise Relationships
Dell's deep ties with large enterprises, built over years of providing customized hardware and support solutions, create significant switching costs. This loyalty is reinforced by ongoing service contracts and integration.
↑Brand Recognition and Trust
Dell is a globally recognized brand, particularly in the business and education sectors. This established trust reduces perceived risk for buyers when selecting their IT infrastructure.
↑Scalable Supply Chain Efficiency
Dell's direct-to-customer model and optimized supply chain allow for cost efficiencies and rapid adaptation to market demand. This operational prowess supports competitive pricing and product availability.
INVESTMENT RISKS
↓Intensifying PC Chip Competition
Nvidia's entry into PC chips directly challenges Intel's dominance, potentially impacting Dell's component sourcing and pricing power. This could lead to margin pressure on their core PC business.
↓AI Valuation Volatility
Scott Galloway's prediction of a significant AI valuation crash suggests potential headwinds for companies heavily invested in AI hardware. This could impact future growth expectations and investor sentiment.
↓Semiconductor Market Fluctuations
The sharp decline in key semiconductor stocks like Micron and SanDisk indicates broader market instability. This could affect Dell's component costs and the overall demand for its hardware products.
Base case
DELL base case valuation
Intrinsic Value
$707.69
Margin of safety
+44.1%
Expected annual return
+12.3%
Base case assumptions: 20.0% annual growth, 10.0% discount rate, 28x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the DELL valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Dell Technologies Inc. respond.
Open DCF Calculator for DELLCompany Overview
Dell Technologies Inc. is a worldwide technology leader that designs, develops, manufactures, markets, sells, and provides support for a broad spectrum of information technology (IT) solutions, products, and services. The company's business activities are structured into three primary segments: the Infrastructure Solutions Group (ISG), the Client Solutions Group (CSG), and VMware. The ISG division focuses on delivering enterprise-grade offerings, including both traditional and next-generation storage solutions, alongside various server configurations such as rack, blade, tower, and hyperscale models. This segment also provides networking products and related services aimed at helping corporate clients modernize their IT infrastructure, enrich end-user experiences, and accelerate critical business applications and processes. Complementary software, peripherals, and extensive support services—encompassing deployment, configuration, and extended warranties—are also part of its portfolio. The CSG segment addresses end-user computing requirements by offering personal computers like desktops, workstations, and notebooks, as well as displays and projectors. It further includes proprietary and third-party software, peripheral devices, and a full suite of support, installation, setup, and extended warranty services. The VMware division specializes in assisting customers with managing intricate IT landscapes, particularly concerning hybrid and multi-cloud environments, modern applications, network infrastructure, security protocols, and digital workspaces. Its services enable efficient resource management across private, multi-cloud, and multi-device setups. Furthermore, Dell Technologies offers information security solutions and cloud software, including Infrastructure-as-a-Service (IaaS), which empower customers to migrate, operate, and manage mission-critical applications within cloud-based IT environments. Founded in 1984, the company was initially known as Denali Holding Inc. before officially changing its name to Dell Technologies Inc. in August 2016. Its global headquarters are situated in Round Rock, Texas.
Financial Metrics — DELL Stock Valuation Data
Revenue/Share (TTM)
$206.47
FCF/Share (TTM)
$14.55
ROIC (TTM)
18.5%
ROE (TTM)
-363.2%
P/FCF
27.8x
EV/EBITDA
25.8x
FCF Yield
3.59%
Debt/Equity
n/m
Based on trailing twelve-month data, DELL shows a free cash flow per share of $14.55 and a ROIC of 18.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 27.8x and FCF yield of 3.59% are important context metrics when evaluating DELL's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of DELL?
Dell Technologies Inc. currently generates $14.55 in free cash flow per share. At the current price of $395.57, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is DELL undervalued?
DELL trades at a P/FCF ratio of 27.8x with a free cash flow yield of 3.59%. This P/FCF is in a moderate range. However, whether DELL is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value DELL stock using DCF?
To perform a DCF valuation on Dell Technologies Inc.: (1) Start with the trailing free cash flow per share ($14.55) as the base, (2) project future FCF growth over 5-10 years based on Computer Hardware industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting DELL's risk profile — with a debt-to-equity of -22.19x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to DELL?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Dell Technologies Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Computer Hardware trends, then discounting those amounts to today's dollars. DELL's ROIC of 18.5% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
How does WACC affect DELL stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For DELL, with a debt-to-equity ratio of -22.19x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 25.8x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See DELL PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Technology valuationsDCF and P/E value DELL with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.