Dell Technologies Inc. (DELL) Fair Value & PE Analysis
Computer Hardware · NYSE
Current Price
$369.63
PE Ratio (TTM)
28.9x
Intrinsic Value
$526.61
+29.8% margin of safety
What Is Dell Technologies Inc.'s Fair Value?
As of 2026-07-29, applying a 29.0x earnings multiple to Dell Technologies Inc.'s (DELL) earnings per share of $12.96 yields a fair value estimate of $526.61 per share, versus a market price of $369.63.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $441.43 to $622.99. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · DELL intrinsic value (DCF view)
Is Dell Technologies Inc. (DELL) Overvalued?
At $369.63, DELL trades about 29.8% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑AI Infrastructure Dominance
Dell's strong position in AI infrastructure, evidenced by ISG growth and a substantial backlog, creates a significant competitive advantage. This demand is driven by the ongoing AI revolution.
↑Enterprise Scale and Relationships
Deep-rooted relationships with large enterprises and government entities provide sticky customer bases. Dell's ability to deliver complex solutions at scale is a key differentiator.
↑Broad Product and Service Portfolio
Dell offers a comprehensive suite of hardware, software, and services. This integrated approach allows for cross-selling opportunities and deeper customer engagement.
INVESTMENT RISKS
↓Customer Concentration Risk
While large enterprise relationships are a strength, over-reliance on a few major clients could pose a risk if those clients shift their spending.
↓Supply Chain Vulnerabilities
Global supply chain disruptions, geopolitical events, or component shortages can impact Dell's ability to meet demand and manage costs.
↓Execution of AI Strategy
While AI infrastructure is a growth driver, Dell's success hinges on effectively executing its AI strategy and adapting to evolving market needs.
Base case
DELL base case PE valuation
Intrinsic Value
$526.61
Margin of safety
+29.8%
Expected annual return
+7.3%
Base case assumptions: 14.2% annual earnings growth, 29x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the DELL PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Dell Technologies Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
28.9x
PEG Ratio
0.29
Earnings Yield
3.51%
ROE (TTM)
-363.2%
Revenue/Share (TTM)
$206.47
Dividend Yield
0.62%
Debt/Equity
n/m
Frequently Asked Questions
What is the PE ratio of DELL?
The trailing twelve-month PE ratio of DELL reflects how much investors pay per dollar of Dell Technologies Inc.'s earnings. This metric is most useful when compared to Computer Hardware peers and the company's own historical range.
Is DELL overvalued based on PE ratio?
DELL's PE of 28.9x combined with a PEG ratio of 0.29 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Computer Hardware, a DCF analysis may be more appropriate.
How do I value DELL stock using PE ratio?
To value Dell Technologies Inc. using PE: (1) Compare the current PE (28.9x) against the Computer Hardware median to assess relative pricing, (2) check the PEG ratio (0.29) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of DELL?
DELL's PEG ratio is 0.29, calculated by dividing the PE ratio (28.9x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for DELL stock valuation?
PE ratio gives a quick relative read — how DELL is priced versus Computer Hardware peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See DELL DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value DELL with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.