As of December 17, 2025, Dell Technologies Inc's estimated intrinsic value ranges from $72.60 to $210.64 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $210.64 | +64.7% |
| Discounted Cash Flow (5Y) | $172.96 | +35.2% |
| Dividend Discount Model (Multi-Stage) | $124.22 | -2.9% |
| Dividend Discount Model (Stable) | $79.70 | -37.7% |
| Earnings Power Value | $72.60 | -43.2% |
Is Dell Technologies Inc (DELL) undervalued or overvalued?
With the current market price at $127.89, the stock appears to be moderately undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Dell Technologies Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.22 | 1.35 |
| Cost of equity | 9.5% | 12.4% |
| Cost of debt | 4.7% | 5.1% |
| Tax rate | 13.7% | 16.9% |
| Debt/Equity ratio | 0.28 | 0.28 |
| After-tax WACC | 8.3% | 10.6% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $173 | $137,589M | 74.1% |
| 10-Year Growth | $211 | $162,844M | 54.1% |
| 5-Year EBITDA | $221 | $170,106M | 79.1% |
| 10-Year EBITDA | $243 | $184,472M | 59.4% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $6,546M |
| Discount Rate (WACC) | 10.6% - 8.3% |
| Enterprise Value | $61,591M - $79,066M |
| Net Debt | $21,674M |
| Equity Value | $39,917M - $57,392M |
| Outstanding Shares | 670M |
| Fair Value | $60 - $86 |
| Selected Fair Value | $72.60 |
| Metric | Value |
|---|---|
| Market Capitalization | $85712M |
| Enterprise Value | $107386M |
| Trailing P/E | 16.08 |
| Forward P/E | 15.04 |
| Trailing EV/EBITDA | 12.10 |
| Current Dividend Yield | 163.47% |
| Dividend Growth Rate (5Y) | -6.80% |
| Debt-to-Equity Ratio | 0.28 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $63.19 |
| Discounted Cash Flow (5Y) | 25% | $43.24 |
| Dividend Discount Model (Multi-Stage) | 20% | $24.84 |
| Dividend Discount Model (Stable) | 15% | $11.96 |
| Earnings Power Value | 10% | $7.26 |
| Weighted Average | 100% | $150.49 |
Based on our comprehensive valuation analysis, Dell Technologies Inc's intrinsic value is $150.49, which is approximately 17.7% above the current market price of $127.89.
Key investment considerations:
Given these factors, we believe Dell Technologies Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.