DCF Tool

DELL

Dell Technologies Inc – Data Processing, Hosting, and Related Services
Dell Technologies helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry's broadest and most innovative technology and services portfolio for the data era.
Analysis Results
Intrinsic Value $4,887.51
Latest Price $47.23
Relative Value 99% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 55.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 55.0%, 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)
2023 14.6 13.6
2024 22.6 19.8
2025 35.1 28.6
2026 54.4 41.4
2027 84.2 60.0
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1710 billion. This corresponds to a present value of 1140 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 163 billion. Adding in the terminal value gives a total present value of 1300 billion.

There are presently 266.0 million outstanding shares, so the intrinsic value per share is 4887.51.

Financial Statements

The following data was to determine the past cash flows.

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

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