Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Dell Technologies Inc. (DELL)

Company Dividend Discount ModelIndustry: Computer HardwareSector: Technology

Valuation Snapshot

Stable Growth$70.60 - $109.24$88.52
Multi-Stage$99.24 - $108.83$103.94
Blended Fair Value$96.23
Current Price$162.01
Upside-40.60%
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 Rate8.83%8.83%8.83%
Growth Rate0.42%1.42%2.42%
Fair Value$70.60$88.52$109.24
Upside / Downside-56.42%-45.36%-32.57%

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 Rate8.83%8.83%8.83%
Growth Rate0.42%1.42%2.42%
Year 1 PV (M)1,916.471,935.561,954.64
Year 2 PV (M)2,324.312,370.832,417.82
Year 3 PV (M)2,657.652,737.852,819.64
Year 4 PV (M)2,925.593,043.883,165.72
Year 5 PV (M)3,136.233,295.533,461.24
PV of Terminal Value (M)56,976.9459,871.0762,881.62
Equity Value (M)69,937.1973,254.7176,700.68
Shares Outstanding (M)704.76704.76704.76
Fair Value$99.24$103.94$108.83
Upside / Downside-38.75%-35.84%-32.82%

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