Dell Technologies Inc. (DELL)
Valuation Overview•Is Dell Technologies Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 49/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is broadly bullish, projecting solid upside. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
DELL struggles with subpar profitability and pressured margins. This is paired with a moderately leveraged but stable balance sheet.
The company exhibits steady, low-single-digit revenue growth paired with highly explosive earnings growth (38.9% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 8.0%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $43.8B | +18.8% | +3.5% | +5.5% | +8.4% | |
| EBITDA | $3.9B | — | +8.7% | — | — | |
| Net Income | $3.4B | +29.3% | +34.5% | — | — | |
| EPS (Diluted) | $5.24 | +36.1% | +38.9% | +15.5% | — | |
| Free Cash Flow | $3.1B | +357.6% | +147.8% | -1.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 19.2% | 22.0% | 22.0% | 23.3% |
| Operating Margin | 8.0% | 6.7% | 6.1% | 3.0% |
| Net Margin | 6.3% | 4.6% | 4.3% | 2.3% |
| FCF Margin | 7.0% | 5.4% | 4.8% | 5.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.96 | $4.86 | +64.2% | ||
| Q1'26 | $3.53 | $3.89 | +10.2% | ||
| Q4'25 | $2.47 | $2.59 | +4.9% | ||
| Q3'25 | $2.29 | $2.32 | +1.3% | ||
| Q2'25 | $1.70 | $1.55 | -8.8% | ||
| Q1'25 | $2.52 | $2.68 | +6.3% | ||
| Q4'24 | $2.04 | $2.15 | +5.4% | ||
| Q3'24 | $1.70 | $1.89 | +11.2% |
Total return is +253.6% (1Y), outperforming the benchmark by +228.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +221.7% | +212.4% | — |
| 1Y | +253.6% | +228.7% | +1.9% |
| 3YCAGR | +103.5% | +85.5% | +11.4% |
| 5YCAGR | +52.9% | +40.8% | +14.6% |
| 10YCAGR | +42.5% | +29.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Dell Technologies Inc. (DELL) valuation, health, and returns.
Dell Technologies Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -43.3% downside from DCF intrinsic value of $232.44)
Dell Technologies Inc. has multiple valuation anchors: DCF Intrinsic Value: $232.44 | Peer Relative Fair Value: $325.42 | Wall Street Analyst Target: $449.54 (implying +9.6% upside). A convergence of these signals offers higher conviction.
Dell Technologies Inc. displays fair financial health with a composite quality score of 49/100, supported by a Altman Z-Score of 2.7 (grey zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 34.2%.
Dell Technologies Inc. pays a 0.5% dividend yield, covered by a 25% payout ratio with 4 years of growth, supplemented by a 2.2% buyback yield.
Dell Technologies Inc.'s current growth trajectory is Accelerating. The company achieved +18.8% 1Y revenue growth and +36.1% 1Y EPS growth, compared to its 3Y revenue CAGR of +3.5%.
Wall Street consensus is Buy based on 45 analysts, beating EPS expectations in 92% of recent quarters with a 4-quarter streak. The consensus price target represents a +9.6% change from current levels.
Investment risks for Dell Technologies Inc. include: -32.6% 1-year max drawdown, high beta (1.90x market volatility). Volatility risk is characterized by a beta of 1.90x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.