DELL
Dell Technologies Inc.
$426.54
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 78.7% above fair value
You pay
$426.54
Bear
$190.92
Fair
$238.67
Bull
$286.39
Bear
$190.92
-55.2%
$9.24 × 12x P/E
Fair
$238.67
-44.0%
$9.24 × 15x P/E
Bull
$286.39
-32.9%
$9.24 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
46.2x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $472.23 from 45 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $238.67 per share.
Warnings
Wall Street's average price target is $472.23 (from 45 analysts). Our estimate is 71% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples