As of February 8, 2026, Dell Technologies Inc's estimated intrinsic value ranges from $75.37 to $220.51 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $220.51 | +82.2% |
| Discounted Cash Flow (5Y) | $181.07 | +49.6% |
| Dividend Discount Model (Multi-Stage) | $128.32 | +6.0% |
| Dividend Discount Model (Stable) | $80.89 | -33.2% |
| Earnings Power Value | $75.37 | -37.7% |
Is Dell Technologies Inc (DELL) undervalued or overvalued?
With the current market price at $121.05, the stock appears to be significantly 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 | 1.26 |
| Cost of equity | 9.5% | 11.9% |
| Cost of debt | 4.7% | 5.1% |
| Tax rate | 13.7% | 16.9% |
| Debt/Equity ratio | 0.3 | 0.3 |
| After-tax WACC | 8.2% | 10.1% |
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 | $181 | $143,024M | 74.9% |
| 10-Year Growth | $221 | $169,461M | 55.3% |
| 5-Year EBITDA | $216 | $166,189M | 78.4% |
| 10-Year EBITDA | $241 | $183,393M | 58.7% |
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) | 10.1% - 8.2% |
| Enterprise Value | $64,624M - $79,749M |
| Net Debt | $21,674M |
| Equity Value | $42,950M - $58,075M |
| Outstanding Shares | 670M |
| Fair Value | $64 - $87 |
| Selected Fair Value | $75.37 |
| Metric | Value |
|---|---|
| Market Capitalization | $81128M |
| Enterprise Value | $102802M |
| Trailing P/E | 15.22 |
| Forward P/E | 14.23 |
| Trailing EV/EBITDA | 11.60 |
| Current Dividend Yield | 175.53% |
| Dividend Growth Rate (5Y) | -6.80% |
| Debt-to-Equity Ratio | 0.30 |
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% | $66.15 |
| Discounted Cash Flow (5Y) | 25% | $45.27 |
| Dividend Discount Model (Multi-Stage) | 20% | $25.66 |
| Dividend Discount Model (Stable) | 15% | $12.13 |
| Earnings Power Value | 10% | $7.54 |
| Weighted Average | 100% | $156.75 |
Based on our comprehensive valuation analysis, Dell Technologies Inc's intrinsic value is $156.75, which is approximately 29.5% above the current market price of $121.05.
Key investment considerations:
Given these factors, we believe Dell Technologies Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.