Income Statement Flow (TTM) | Source: Yahoo Finance
Source: Cash Flow Statement | LFCF = Operating Cash Flow - CapEx - Interest Expense
Fair Value: $215.18
+80.6% Upside
Stock appears undervalued with 80.6% upside to fair value. High confidence based on valuation spread and data quality.
Dell Technologies Inc. (DELL) currently trades at $119.16, representing a 80.6% discount to our calculated fair value of $215.18.
Key Strengths: Positive analyst consensus (buy); Active share buyback program; Dividend yield: 184.00%.
Key Risks: No significant concerns identified.
The company generates $3.04B in levered free cash flow annually, providing real cash returns to shareholders. Wall Street consensus is buy with a mean price target of $161.17.
| Criterion | Status | Notes |
|---|---|---|
| ≤4 operating segments | PASS | Segment count estimated from sector classification. Verify in 10-K for accuracy. |
| Top 2 segments ≥70% of revenue | PASS | Revenue concentration estimated. Verify segment breakdown in 10-K. |
| ≤3 material geographic regions | PASS | Most US-listed companies report US vs International (2 regions). |
| No exotic debt instruments or off-balance-sheet complexity | PASS | Review 10-K for convertibles, derivatives, and off-balance-sheet items. |
Recommendation: PROCEED TO VALUATION
Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates in two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment provides modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage; and general-purpose and AI-optimized servers. This segment also offers networking products and services comprising wide area network infrastructure, data center and edge networking switches, and cables and optics that help its business customers to transform and modernize their infrastructure and complementing its server and storage solutions; and software, peripherals, and services, including consulting and support, and deployment. The CSG segment provides notebooks, desktops, and workstations and branded peripherals that include displays, docking stations, keyboards, mice, webcam and audio devices, and third-party software and peripherals; and configuration, support and deployment, and extended warranties services. The company is involved in originating, collecting, and servicing customer financing arrangements; and offers payment and consumption solutions and services, such as as-a-Service, subscription, utility, leases, and loans, as well as fixed-term loans. It serves enterprises, governmental agencies and other public institutions, educational institutions, healthcare organizations, small and medium-sized businesses, and consumers. 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.
| Market Capitalization | $79.86B |
| (+) Total Debt | $32.04B |
| (-) Cash & Equivalents | $9.57B |
| Net Debt | $22.47B |
| Enterprise Value | $102.33B |
| Metric | Value | What It Means |
|---|---|---|
| Net Debt / EBITDA | 2.15x | Moderate |
| Interest Coverage | 4.9x | Adequate |
| Debt / Equity | N/A | N/A |
| Current Ratio | 0.85 | Review - may struggle with short-term obligations |
Overall: Balance sheet is strong with conservative leverage.
Industry: Computer Hardware | Data: TTM (Trailing 12 Months) as of 2026-02-02 | Source: Yahoo Finance
| Company | Market Cap | P/E | Forward P/E | EV/EBITDA | Profit Margin |
|---|---|---|---|---|---|
| AAPL | $3968.6B | 34.2x | 29.1x | 25.1x | 27.0% |
| DELL (Target) | $79.9B | 15.9x | 10.4x | 9.4x | 5.0% |
| HPE | $29.4B | 0.0x | 8.0x | 10.6x | 0.2% |
| PSTG | $23.2B | 185.1x | 30.9x | 105.0x | 3.7% |
| NTAP | $19.5B | 17.0x | 11.4x | 11.0x | 17.7% |
| HPQ | $18.5B | 7.5x | 6.2x | 5.6x | 4.6% |
| Peer Average (excl. target) | - | 17.0x | 11.4x | 10.8x | 4.2% |
| Method | Inputs | Fair Value |
|---|---|---|
| Equity (TTM EPS) | EPS: $7.48 x 18.7x P/E | $139.88 |
| Equity (Forward EPS) | EPS: $11.51 x 18.7x P/E | $215.18 |
| EV-Based (EBITDA) | EBITDA: $10.44B x 11.9x | $304.88 |
| Headline Fair Value | Median value used (spread 75.0% exceeds 15% threshold) | $215.18 |
Assessment: Strong positive profile with multiple favorable factors.
DELL trades at 15.9x TTM P/E and 10.4x Forward P/E. This compares to peer averages of 17.0x TTM and 11.4x Forward P/E.
The company generates positive levered free cash flow of $3.04B, demonstrating its ability to generate real cash after all obligations. The 3.8% LFCF yield is attractive.
23 analysts cover this stock with a consensus buy rating. Price targets range from $111 to $200, with a mean of $161.
16.34 - Neutral/Low Fear
Score: 61/100
143.65
SPY YTD: 17.7% | RSP YTD: 12.4%
No customer/supplier data available for this company. Data is curated from SEC 10-K filings for major tech companies.
Track Record: 7 beats, 1 misses, 0 in-line out of 8 quarters | 88% Beat Rate
| Date | EPS Estimate | EPS Actual | Result | Surprise % |
|---|---|---|---|---|
| 2025-11-25 | $2.48 | $2.59 | BEAT | 4.5% |
| 2025-08-28 | $2.29 | $2.32 | BEAT | 1.2% |
| 2025-05-29 | $1.27 | $1.37 | BEAT | 7.7% |
| 2025-02-27 | $2.52 | $2.68 | BEAT | 6.4% |
| 2024-11-26 | $1.40 | $1.58 | BEAT | 13.3% |
| 2024-08-29 | $1.71 | $1.89 | BEAT | 10.2% |
| 2024-05-30 | $1.29 | $1.27 | MISS | -1.9% |
| 2024-02-29 | $1.72 | $2.20 | BEAT | 27.9% |
All financial data sourced from:
Click any blue number throughout the report to view its source.
This analysis is generated automatically using publicly available data and should not be considered as financial advice. All figures are sourced from Yahoo Finance and may contain inaccuracies. Always verify data with primary sources (SEC filings, company IR) before making investment decisions.
Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal.
Levered FCF is cash that can't be faked. Unlike earnings which can be manipulated through accounting (depreciation schedules, revenue recognition, etc.), cash flow is simple: the money is either in the bank or it's not.
This metric shows how much actual cash the company generates after paying for:
A company with strong Levered FCF can pay dividends, buy back shares, pay down debt, or invest in growth - all from real cash, not accounting profits.
Customers and suppliers report earnings BEFORE the company you're analyzing. Their results give you early signals about demand and supply chain health.
Customer Example: If Microsoft (AMD customer) beats revenue estimates by 20%, it likely means they bought more chips than analysts expected. This is bullish for AMD's upcoming earnings.
Supplier Example: If TSMC (AMD supplier) reports strong demand from AMD, that confirms AMD's production is ramping up.
By the time AMD reports, you already have data points from 5+ related companies. Smart analysts piece these together to predict earnings before they're announced.
Not all revenue is equal. Different business segments have different growth rates and profit margins.
For example, AMD's Data Center segment has ~40% margins while Gaming might be ~15%. A shift toward Data Center means higher overall profitability even if total revenue stays flat.
Watch for: