Dell Technologies Inc. (DELL) equity valuation

  • Patrícia de Araújo e Sá Olaio (Student)

Student thesis: Master's Thesis

Abstract

The goal of this dissertation is to perform the valuation of DELL’s Technologies Inc. shares on the 31st of January 2024. The company is United States based and part of the index S&P 500 in the New York Stock Exchange market (NYSE). First an analysis of the industry and the economic context the company is in was done, then a thorough analysis of the enterprise as a whole, more specifically in financial terms, in order to conduct the correct valuation. The major method chosen was the Discounted Cash Flow (DCF), that relies on discounting the estimated future cash flows by the Weighted Average Cost of Capital (WACC) allied with the growth rate. The final value calculated was $47,30 in comparison with the value on the 31st of January 2023 of $40,62, which indicates an upside potential of 16,44% of these shares. In an analyst point of view, the recommendation is to Buy for the shares of DELL Technologies Inc. At last, a sensitivity analysis was made as well as a valuation through the Dividend Discount Model to be compared with the previous method.
Date of Award8 May 2023
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorJosé Carlos Tudela Martins (Supervisor)

Keywords

  • Equity valuation
  • DELL
  • IT industry
  • Computers
  • IT
  • Discounted cash flow

Designation

  • Mestrado em Gestão Aplicada

Cite this

'