DCF Tool

DELL

Dell Technologies Inc – Electronic Computer Manufacturing
dell technologies is a unique family of businesses that provides the essential infrastructure for organizations to build their digital future, transform it and protect their most important asset, information.
Analysis Results
Intrinsic Value $1,773.79
Latest Price $70.03
Relative Value 96% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 17.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 10.2 9.68
2025 12.0 10.8
2026 14.2 12.0
2027 16.7 13.4
2028 19.6 14.9
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 544 billion. This corresponds to a present value of 390 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 60.7 billion. Adding in the terminal value gives a total present value of 451 billion.

There are presently 254.0 million outstanding shares, so the intrinsic value per share is 1773.79.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 42,351,000,000
Current Cash 8,607,000,000
Current Liabilities 51,654,000,000
Current Debt 6,573,000,000
Non-Cash Working Capital (NCWC) -11,337,000,000
Change in NCWC 3,503,000,000
EBIT 5,771,000,000
Tax Provision 803,000,000
Depreciation and Amortization 3,156,000,000
Capital Expenditure -3,003,000,000
Unlevered Free Cash Flow 7,990,065,736
Current Assets 45,033,000,000
Current Cash 9,477,000,000
Current Liabilities 56,219,000,000
Current Debt 5,823,000,000
Non-Cash Working Capital (NCWC) -14,840,000,000
Change in NCWC 3,564,000,000
EBIT 4,659,000,000
Tax Provision 981,000,000
Depreciation and Amortization 4,551,000,000
Capital Expenditure -2,796,000,000
Unlevered Free Cash Flow 9,206,350,666
Current Assets 43,567,000,000
Current Cash 14,201,000,000
Current Liabilities 54,132,000,000
Current Debt 6,362,000,000
Non-Cash Working Capital (NCWC) -18,404,000,000
Change in NCWC -1,251,000,000
EBIT 5,144,000,000
Tax Provision 165,000,000
Depreciation and Amortization 5,390,000,000
Capital Expenditure -2,082,000,000
Unlevered Free Cash Flow 6,969,730,245
Current Assets 36,868,000,000
Current Cash 9,302,000,000
Current Liabilities 52,456,000,000
Current Debt 7,737,000,000
Non-Cash Working Capital (NCWC) -17,153,000,000
Change in NCWC -2,963,000,000
EBIT 2,622,000,000
Tax Provision -5,533,000,000
Depreciation and Amortization 6,143,000,000
Capital Expenditure -2,576,000,000
Unlevered Free Cash Flow 3,226,000,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.