Intrinsic value of Dell Technologies Inc. - DELL

Previous Close

$51.32

  Intrinsic Value

$93.97

stock screener

  Rating & Target

str. buy

+83%

Previous close

$51.32

 
Intrinsic value

$93.97

 
Up/down potential

+83%

 
Rating

str. buy

We calculate the intrinsic value of DELL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 36.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  15.00
  14.00
  13.10
  12.29
  11.56
  10.90
  10.31
  9.78
  9.30
  8.87
  8.49
  8.14
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.22
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
Revenue, $m
  90,459
  103,123
  116,632
  130,967
  146,108
  162,040
  178,754
  196,241
  214,501
  233,536
  253,356
  273,974
  295,411
  317,690
  340,843
  364,903
  389,909
  415,907
  442,945
  471,076
  500,357
  530,850
  562,620
  595,737
  630,276
  666,315
  703,936
  743,226
  784,277
  827,185
Variable operating expenses, $m
  89,889
  101,518
  113,924
  127,087
  140,992
  155,623
  170,971
  187,030
  203,798
  221,279
  232,661
  251,595
  271,281
  291,740
  313,002
  335,096
  358,060
  381,935
  406,764
  432,597
  459,486
  487,488
  516,663
  547,076
  578,793
  611,888
  646,436
  682,517
  720,215
  759,618
Fixed operating expenses, $m
  3,091
  3,159
  3,228
  3,299
  3,372
  3,446
  3,522
  3,599
  3,678
  3,759
  3,842
  3,926
  4,013
  4,101
  4,191
  4,283
  4,378
  4,474
  4,572
  4,673
  4,776
  4,881
  4,988
  5,098
  5,210
  5,325
  5,442
  5,562
  5,684
  5,809
Total operating expenses, $m
  92,980
  104,677
  117,152
  130,386
  144,364
  159,069
  174,493
  190,629
  207,476
  225,038
  236,503
  255,521
  275,294
  295,841
  317,193
  339,379
  362,438
  386,409
  411,336
  437,270
  464,262
  492,369
  521,651
  552,174
  584,003
  617,213
  651,878
  688,079
  725,899
  765,427
Operating income, $m
  -2,520
  -1,554
  -520
  580
  1,744
  2,972
  4,261
  5,612
  7,024
  8,498
  16,853
  18,453
  20,117
  21,849
  23,650
  25,523
  27,471
  29,499
  31,609
  33,806
  36,095
  38,481
  40,968
  43,564
  46,273
  49,102
  52,058
  55,147
  58,378
  61,758
EBITDA, $m
  9,604
  11,313
  13,140
  15,080
  17,132
  19,294
  21,564
  23,940
  26,424
  29,014
  31,713
  34,522
  37,444
  40,482
  43,641
  46,925
  50,340
  53,892
  57,588
  61,435
  65,442
  69,616
  73,967
  78,505
  83,240
  88,182
  93,345
  98,739
  104,377
  110,274
Interest expense (income), $m
  0
  2,801
  3,673
  4,645
  5,682
  6,783
  7,945
  9,168
  10,452
  11,794
  13,196
  14,658
  16,179
  17,762
  19,408
  21,119
  22,896
  24,744
  26,664
  28,660
  30,736
  32,895
  35,143
  37,485
  39,924
  42,467
  45,118
  47,885
  50,774
  53,790
  56,942
Earnings before tax, $m
  -5,321
  -5,226
  -5,165
  -5,102
  -5,038
  -4,973
  -4,907
  -4,840
  -4,770
  -4,698
  2,195
  2,273
  2,355
  2,441
  2,531
  2,627
  2,728
  2,835
  2,949
  3,070
  3,200
  3,337
  3,484
  3,640
  3,806
  3,984
  4,172
  4,374
  4,588
  4,816
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  593
  614
  636
  659
  683
  709
  736
  765
  796
  829
  864
  901
  941
  983
  1,028
  1,076
  1,127
  1,181
  1,239
  1,300
Net income, $m
  -5,321
  -5,226
  -5,165
  -5,102
  -5,038
  -4,973
  -4,907
  -4,840
  -4,770
  -4,698
  1,603
  1,660
  1,719
  1,782
  1,848
  1,917
  1,991
  2,070
  2,153
  2,241
  2,336
  2,436
  2,543
  2,657
  2,779
  2,908
  3,046
  3,193
  3,349
  3,516

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  142,905
  162,912
  184,253
  206,898
  230,818
  255,988
  282,392
  310,018
  338,864
  368,936
  400,246
  432,819
  466,684
  501,881
  538,456
  576,465
  615,971
  657,042
  699,756
  744,196
  790,454
  838,625
  888,815
  941,133
  995,697
  1,052,630
  1,112,063
  1,174,133
  1,238,984
  1,306,769
Adjusted assets (=assets-cash), $m
  142,905
  162,912
  184,253
  206,898
  230,818
  255,988
  282,392
  310,018
  338,864
  368,936
  400,246
  432,819
  466,684
  501,881
  538,456
  576,465
  615,971
  657,042
  699,756
  744,196
  790,454
  838,625
  888,815
  941,133
  995,697
  1,052,630
  1,112,063
  1,174,133
  1,238,984
  1,306,769
Revenue / Adjusted assets
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
  0.633
Average production assets, $m
  47,220
  53,830
  60,882
  68,365
  76,268
  84,585
  93,310
  102,438
  111,970
  121,906
  132,252
  143,015
  154,205
  165,834
  177,920
  190,479
  203,533
  217,104
  231,217
  245,902
  261,186
  277,104
  293,688
  310,975
  329,004
  347,816
  367,454
  387,964
  409,393
  431,790
Working capital, $m
  -15,830
  -18,047
  -20,411
  -22,919
  -25,569
  -28,357
  -31,282
  -34,342
  -37,538
  -40,869
  -44,337
  -47,946
  -51,697
  -55,596
  -59,647
  -63,858
  -68,234
  -72,784
  -77,515
  -82,438
  -87,562
  -92,899
  -98,458
  -104,254
  -110,298
  -116,605
  -123,189
  -130,065
  -137,248
  -144,757
Total debt, $m
  68,012
  86,018
  105,225
  125,605
  147,133
  169,786
  193,550
  218,413
  244,375
  271,439
  299,619
  328,934
  359,413
  391,090
  424,008
  458,216
  493,770
  530,735
  569,177
  609,173
  650,805
  694,160
  739,331
  786,417
  835,524
  886,764
  940,253
  996,116
  1,054,483
  1,115,489
Total liabilities, $m
  128,615
  146,621
  165,828
  186,208
  207,736
  230,389
  254,153
  279,016
  304,978
  332,042
  360,222
  389,537
  420,016
  451,693
  484,611
  518,819
  554,373
  591,338
  629,780
  669,776
  711,408
  754,763
  799,934
  847,020
  896,127
  947,367
  1,000,856
  1,056,719
  1,115,086
  1,176,092
Total equity, $m
  14,291
  16,291
  18,425
  20,690
  23,082
  25,599
  28,239
  31,002
  33,886
  36,894
  40,025
  43,282
  46,668
  50,188
  53,846
  57,647
  61,597
  65,704
  69,976
  74,420
  79,045
  83,863
  88,882
  94,113
  99,570
  105,263
  111,206
  117,413
  123,898
  130,677
Total liabilities and equity, $m
  142,906
  162,912
  184,253
  206,898
  230,818
  255,988
  282,392
  310,018
  338,864
  368,936
  400,247
  432,819
  466,684
  501,881
  538,457
  576,466
  615,970
  657,042
  699,756
  744,196
  790,453
  838,626
  888,816
  941,133
  995,697
  1,052,630
  1,112,062
  1,174,132
  1,238,984
  1,306,769
Debt-to-equity ratio
  4.760
  5.280
  5.710
  6.070
  6.370
  6.630
  6.850
  7.050
  7.210
  7.360
  7.490
  7.600
  7.700
  7.790
  7.870
  7.950
  8.020
  8.080
  8.130
  8.190
  8.230
  8.280
  8.320
  8.360
  8.390
  8.420
  8.460
  8.480
  8.510
  8.540
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -5,321
  -5,226
  -5,165
  -5,102
  -5,038
  -4,973
  -4,907
  -4,840
  -4,770
  -4,698
  1,603
  1,660
  1,719
  1,782
  1,848
  1,917
  1,991
  2,070
  2,153
  2,241
  2,336
  2,436
  2,543
  2,657
  2,779
  2,908
  3,046
  3,193
  3,349
  3,516
Depreciation, amort., depletion, $m
  12,124
  12,867
  13,659
  14,500
  15,388
  16,322
  17,303
  18,328
  19,399
  20,516
  14,860
  16,069
  17,326
  18,633
  19,991
  21,402
  22,869
  24,394
  25,979
  27,629
  29,347
  31,135
  32,999
  34,941
  36,967
  39,080
  41,287
  43,591
  45,999
  48,516
Funds from operations, $m
  6,803
  7,641
  8,495
  9,398
  10,350
  11,349
  12,395
  13,489
  14,629
  15,818
  16,462
  17,729
  19,045
  20,415
  21,839
  23,320
  24,860
  26,463
  28,132
  29,871
  31,682
  33,571
  35,542
  37,598
  39,745
  41,989
  44,333
  46,784
  49,348
  52,031
Change in working capital, $m
  -2,065
  -2,216
  -2,364
  -2,508
  -2,650
  -2,788
  -2,925
  -3,060
  -3,195
  -3,331
  -3,468
  -3,608
  -3,751
  -3,899
  -4,052
  -4,210
  -4,376
  -4,550
  -4,732
  -4,923
  -5,124
  -5,336
  -5,560
  -5,796
  -6,044
  -6,307
  -6,584
  -6,876
  -7,184
  -7,509
Cash from operations, $m
  8,868
  9,857
  10,859
  11,906
  12,999
  14,137
  15,320
  16,549
  17,825
  19,149
  19,931
  21,337
  22,797
  24,314
  25,890
  27,530
  29,236
  31,013
  32,864
  34,794
  36,807
  38,908
  41,101
  43,394
  45,790
  48,295
  50,917
  53,660
  56,532
  59,540
Maintenance CAPEX, $m
  -4,613
  -5,306
  -6,048
  -6,841
  -7,681
  -8,569
  -9,504
  -10,484
  -11,510
  -12,581
  -13,697
  -14,860
  -16,069
  -17,326
  -18,633
  -19,991
  -21,402
  -22,869
  -24,394
  -25,979
  -27,629
  -29,347
  -31,135
  -32,999
  -34,941
  -36,967
  -39,080
  -41,287
  -43,591
  -45,999
New CAPEX, $m
  -6,161
  -6,611
  -7,052
  -7,482
  -7,904
  -8,317
  -8,724
  -9,128
  -9,532
  -9,936
  -10,346
  -10,763
  -11,190
  -11,630
  -12,085
  -12,559
  -13,054
  -13,571
  -14,114
  -14,684
  -15,285
  -15,917
  -16,584
  -17,287
  -18,029
  -18,812
  -19,638
  -20,509
  -21,429
  -22,398
Cash from investing activities, $m
  -10,774
  -11,917
  -13,100
  -14,323
  -15,585
  -16,886
  -18,228
  -19,612
  -21,042
  -22,517
  -24,043
  -25,623
  -27,259
  -28,956
  -30,718
  -32,550
  -34,456
  -36,440
  -38,508
  -40,663
  -42,914
  -45,264
  -47,719
  -50,286
  -52,970
  -55,779
  -58,718
  -61,796
  -65,020
  -68,397
Free cash flow, $m
  -1,907
  -2,059
  -2,241
  -2,417
  -2,586
  -2,749
  -2,908
  -3,064
  -3,217
  -3,368
  -4,112
  -4,286
  -4,462
  -4,643
  -4,828
  -5,020
  -5,219
  -5,427
  -5,644
  -5,870
  -6,107
  -6,356
  -6,618
  -6,892
  -7,181
  -7,484
  -7,802
  -8,136
  -8,488
  -8,857
Issuance/(repayment) of debt, $m
  16,141
  18,006
  19,207
  20,380
  21,528
  22,653
  23,763
  24,864
  25,962
  27,064
  28,180
  29,315
  30,479
  31,677
  32,918
  34,208
  35,555
  36,964
  38,443
  39,996
  41,632
  43,355
  45,171
  47,086
  49,107
  51,240
  53,489
  55,863
  58,366
  61,006
Issuance/(repurchase) of shares, $m
  7,893
  7,227
  7,299
  7,366
  7,430
  7,491
  7,548
  7,602
  7,655
  7,705
  1,528
  1,598
  1,667
  1,738
  1,810
  1,884
  1,959
  2,038
  2,119
  2,203
  2,290
  2,381
  2,476
  2,575
  2,678
  2,785
  2,897
  3,014
  3,136
  3,263
Cash from financing (excl. dividends), $m  
  24,034
  25,233
  26,506
  27,746
  28,958
  30,144
  31,311
  32,466
  33,617
  34,769
  29,708
  30,913
  32,146
  33,415
  34,728
  36,092
  37,514
  39,002
  40,562
  42,199
  43,922
  45,736
  47,647
  49,661
  51,785
  54,025
  56,386
  58,877
  61,502
  64,269
Total cash flow (excl. dividends), $m
  22,127
  23,174
  24,265
  25,330
  26,372
  27,395
  28,403
  29,402
  30,400
  31,401
  25,596
  26,627
  27,684
  28,772
  29,900
  31,072
  32,295
  33,575
  34,918
  36,329
  37,814
  39,379
  41,029
  42,769
  44,605
  46,541
  48,585
  50,741
  53,014
  55,413
Retained Cash Flow (-), $m
  -7,893
  -7,227
  -7,299
  -7,366
  -7,430
  -7,491
  -7,548
  -7,602
  -7,655
  -7,705
  -3,131
  -3,257
  -3,387
  -3,520
  -3,658
  -3,801
  -3,951
  -4,107
  -4,271
  -4,444
  -4,626
  -4,817
  -5,019
  -5,232
  -5,456
  -5,693
  -5,943
  -6,207
  -6,485
  -6,778
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  14,234
  15,947
  16,966
  17,964
  18,942
  19,904
  20,855
  21,800
  22,745
  23,696
  22,465
  23,370
  24,297
  25,253
  26,242
  27,271
  28,344
  29,468
  30,646
  31,885
  33,189
  34,562
  36,010
  37,537
  39,148
  40,848
  42,641
  44,534
  46,529
  48,634
Discount rate, %
  8.30
  8.72
  9.15
  9.61
  10.09
  10.59
  11.12
  11.68
  12.26
  12.88
  13.52
  14.20
  14.91
  15.65
  16.43
  17.26
  18.12
  19.02
  19.97
  20.97
  22.02
  23.12
  24.28
  25.49
  26.77
  28.11
  29.51
  30.99
  32.54
  34.16
PV of cash for distribution, $m
  13,143
  13,492
  13,047
  12,446
  11,714
  10,879
  9,968
  9,009
  8,031
  7,058
  5,568
  4,752
  3,991
  3,298
  2,678
  2,136
  1,671
  1,282
  963
  708
  508
  356
  243
  161
  104
  65
  40
  23
  13
  7
Current shareholders' claim on cash, %
  82.4
  71.0
  62.1
  55.1
  49.5
  44.8
  41.0
  37.8
  35.0
  32.7
  32.2
  31.8
  31.4
  31.1
  30.7
  30.4
  30.1
  29.7
  29.4
  29.2
  28.9
  28.6
  28.3
  28.1
  27.8
  27.6
  27.3
  27.1
  26.9
  26.7

FINANCIAL RATIOS  of  Dell Technologies Inc. (DELL)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -100%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 0%
Ret/ On Assets - 3 Yr. Avg. 0%
Return On Total Capital 0%
Ret/ On T. Cap. - 3 Yr. Avg. 0%
Return On Equity 0%
Return On Equity - 3 Yr. Avg. 0%
Asset Turnover 0
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 0%
EBITDA Margin - 3 Yr. Avg. 0%
Operating Margin 0%
Oper. Margin - 3 Yr. Avg. 0%
Pre-Tax Margin 0%
Pre-Tax Margin - 3 Yr. Avg. 0%
Net Profit Margin 0%
Net Profit Margin - 3 Yr. Avg. 0%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

DELL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DELL stock intrinsic value calculation we used $78660 million for the last fiscal year's total revenue generated by Dell Technologies Inc.. The default revenue input number comes from 0001 income statement of Dell Technologies Inc.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our DELL stock valuation model: a) initial revenue growth rate of 15% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.3%, whose default value for DELL is calculated based on our internal credit rating of Dell Technologies Inc., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Dell Technologies Inc..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of DELL stock the variable cost ratio is equal to 100.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $3024 million in the base year in the intrinsic value calculation for DELL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Dell Technologies Inc..

Corporate tax rate of 27% is the nominal tax rate for Dell Technologies Inc.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the DELL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for DELL are equal to 52.2%.

Life of production assets of 8.9 years is the average useful life of capital assets used in Dell Technologies Inc. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for DELL is equal to -17.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $11719 million for Dell Technologies Inc. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 718.413 million for Dell Technologies Inc. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Dell Technologies Inc. at the current share price and the inputted number of shares is $36.9 billion.

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