Dell Technologies (DELL): Assessing Valuation After 18% Pullback and Strong 3-Year Gains

Dell Technologies (DELL) has held steady in recent sessions, with investors weighing its recent performance and long-term prospects. Over the past month, the stock has slipped by around 18%, inviting questions about its current valuation.

See our latest analysis for Dell Technologies.

This recent 18% slide in Dell Technologies’ share price stands out against a backdrop of hefty long-term gains, with total shareholder return over three years still near 198%. While some near-term momentum has faded, the company’s bigger story and valuation context remain compelling for long-term investors.

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The big question now is whether Dell’s current dip signals an undervalued opportunity, or if the market has already factored in all its future growth prospects.

Most Popular Narrative: 25.2% Undervalued

Analysts tracking Dell Technologies see a fair value that is far above the latest close, suggesting the current market is not capturing all the upside. This view rests on robust future earnings and margin expansion potential, even as industry risks persist.

Dell is shifting its business mix toward more IP-rich and margin-accretive storage and services through modernization and efficiency improvements. This is likely to expand operating margins and long-term earnings power. Improved capital allocation (for example, ongoing buybacks and dividends) and a now fully deleveraged balance sheet provide flexibility for shareholder returns and investment in high-growth adjacencies like edge computing and telecom, supporting EPS growth and long-term total return.

Read the complete narrative.

Curious which forecasts make this possible? The blueprint behind this valuation includes multi-year profit growth, margin boosts, and strategic expansion, with details you will not want to miss. Find out which financial levers drive such a bullish outlook and why some regard it as the tipping point for Dell’s long-term trajectory.

Result: Fair Value of $164 (UNDERVALUED)

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

However, not all is certain, as margin pressure in core infrastructure and execution risk related to leadership changes could still weigh on Dell’s outlook.

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

Build Your Own Dell Technologies Narrative

If you think there’s another angle or want to dig into the numbers yourself, it’s easy to explore the facts and craft your own story in just a few minutes. 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.

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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.

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