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Assessing Dell Technologies (DELL) Valuation After Recent Share Price Weakness

Simply Wall St · 5d ago

Dell Technologies (DELL) has drawn fresh attention after recent share price weakness, with the stock down about 11% over the past month and 25% over the past 3 months from its last close near $123.93.

See our latest analysis for Dell Technologies.

Set against this recent weakness, Dell Technologies’ 1 year total shareholder return of 4.05% and very large 3 and 5 year total shareholder returns show longer term holders have still seen substantial value creation. At the same time, shorter term share price momentum has clearly faded as the stock consolidates near $123.93.

If Dell’s recent pullback has you comparing options in the sector, it could be a good moment to scan high growth tech and AI stocks for other tech names that fit your criteria.

So with Dell’s shares weaker in recent months, but backed by multi year total returns, solid revenue and net income growth, and a value score of 6, is this pullback a buying opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 24.1% Undervalued

With the narrative fair value at $163.30 against Dell Technologies’ last close of $123.93, the current gap is built on specific earnings and margin assumptions.

The analysts have a consensus price target of $146.429 for Dell Technologies based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $180.0, and the most bearish reporting a price target of just $104.0.

Read the complete narrative.

Want to see what sits behind that valuation spread? The narrative leans on steady revenue expansion, rising profit margins, and a future earnings base that looks very different from today.

Result: Fair Value of $163.30 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you still need to weigh up rising memory costs, which could pressure margins, and the risk that AI growth assumptions prove too optimistic if demand is slower than expected.

Find out about the key risks to this Dell Technologies narrative.

Build Your Own Dell Technologies Narrative

If you look at the numbers and come to a different conclusion, or simply prefer to shape your own view from scratch, you can build a custom Dell Technologies narrative in just a few minutes, starting with Do it your way.

A great starting point for your Dell Technologies research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Dell has sparked your interest, do not stop there. Broaden your watchlist with other focused ideas that can sharpen how you put your capital to work.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.