Definitive Analysis
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Dell Technologies Inc. (DELL)

Company Dividend Discount ModelIndustry: Computer HardwareSector: Technology

Valuation Snapshot

Stable Growth$68.40 - $104.81$85.39
Multi-Stage$94.54 - $103.66$99.01
Blended Fair Value$92.20
Current Price$162.01
Upside-43.09%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%0.00%1.811.521.370.000.000.003.030.000.000.00
YoY Growth--18.94%11.20%0.00%0.00%0.00%-100.00%0.00%0.00%0.00%0.00%
Dividend Yield--1.91%1.22%3.01%0.00%0.00%0.00%8.70%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)5,210.00
(-) Cash Dividends Paid (M)1,424.00
(=) Cash Retained (M)3,786.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,042.00651.25390.75
Cash Retained (M)3,786.003,786.003,786.00
(-) Cash Required (M)-1,042.00-651.25-390.75
(=) Excess Retained (M)2,744.003,134.753,395.25
(/) Shares Outstanding (M)704.76704.76704.76
(=) Excess Retained per Share3.894.454.82
LTM Dividend per Share2.022.022.02
(+) Excess Retained per Share3.894.454.82
(=) Adjusted Dividend5.916.476.84
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.42%1.42%2.42%
Fair Value$68.40$85.39$104.81
Upside / Downside-57.78%-47.29%-35.31%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5,210.005,283.765,358.575,434.445,511.385,589.415,757.10
Payout Ratio27.33%39.87%52.40%64.93%77.47%90.00%92.50%
Projected Dividends (M)1,424.002,106.412,807.853,528.744,269.475,030.475,325.31

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.42%1.42%2.42%
Year 1 PV (M)1,911.711,930.751,949.79
Year 2 PV (M)2,312.772,359.072,405.82
Year 3 PV (M)2,637.902,717.502,798.68
Year 4 PV (M)2,896.633,013.753,134.38
Year 5 PV (M)3,097.473,254.803,418.47
PV of Terminal Value (M)53,771.9856,503.3159,344.52
Equity Value (M)66,628.4669,779.1773,051.65
Shares Outstanding (M)704.76704.76704.76
Fair Value$94.54$99.01$103.66
Upside / Downside-41.64%-38.89%-36.02%

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