Computer Hardware · NYSE
Current Price
$205.68
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Dell Technologies Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports information technology (IT) solutions, products, and services worldwide. The company operates through three segments: Infrastructure Solutions Group (ISG), Client Solutions Group (CSG), and VMware. The ISG segment provides traditional and next-generation storage solutions; and rack, blade, tower, and hyperscale servers. This segment also offers networking products and services that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes; attached software and peripherals; and support and deployment, configuration, and extended warranty services. The CSG segment provides desktops, workstations, and notebooks; displays and projectors; attached and third-party software and peripherals, as well as support and deployment, configuration, and extended warranty services. The VMware segment supports customers in the areas of hybrid and multi-cloud, modern applications, networking, security, and digital workspaces, helping customers to manage IT resource across private clouds and complex multi-cloud, multi-device environments. Dell Technologies Inc. also provides information security; and cloud software and infrastructure-as-a-service solutions that enable customers to migrate, run, and manage mission-critical applications in cloud-based IT environments. The company was formerly known as Denali Holding Inc. and changed its name to Dell Technologies Inc. in August 2016. Dell Technologies Inc. was founded in 1984 and is headquartered in Round Rock, Texas.
ROIC (TTM)
14.6%
ROE (TTM)
-218.2%
FCF Yield
6.16%
Based on trailing twelve-month data, DELL shows a free cash flow per share of N/A and a ROIC of 14.6%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 6.16% are important context metrics when evaluating DELL's stock valuation relative to peers.
The intrinsic value of DELL depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether DELL is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $205.68. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Dell Technologies Inc.: (1) Start with the trailing free cash flow per share 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, and (4) add a terminal value for cash flows beyond the projection period.
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 Computer Hardware will produce over the next 5-10 years, then discounting those amounts to today's dollars. DELL's ROIC of 14.6% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For DELL, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
