Intrinsic value of Dell Technologies Cl V - DVMT

Previous Close

$105.06

  Intrinsic Value

$297.67

stock screener

  Rating & Target

str. buy

+183%

Previous close

$105.06

 
Intrinsic value

$297.67

 
Up/down potential

+183%

 
Rating

str. buy

We calculate the intrinsic value of DVMT 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 20.9

 

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, %
  18.60
  17.24
  16.02
  14.91
  13.92
  13.03
  12.23
  11.50
  10.85
  10.27
  9.74
  9.27
  8.84
  8.46
  8.11
  7.80
  7.52
  7.27
  7.04
  6.84
  6.65
  6.49
  6.34
  6.21
  6.08
  5.98
  5.88
  5.79
  5.71
  5.64
Revenue, $m
  93,291
  109,374
  126,891
  145,817
  166,119
  187,765
  210,724
  234,967
  260,472
  287,219
  315,200
  344,412
  374,862
  406,564
  439,541
  473,826
  509,458
  546,486
  584,966
  624,961
  666,542
  709,788
  754,784
  801,621
  850,398
  901,221
  954,201
  1,009,457
  1,067,115
  1,127,306
Variable operating expenses, $m
  92,489
  107,259
  123,345
  140,724
  159,368
  179,246
  200,330
  222,593
  246,014
  270,577
  289,454
  316,280
  344,242
  373,355
  403,638
  435,122
  467,844
  501,848
  537,184
  573,912
  612,097
  651,811
  693,131
  736,142
  780,935
  827,606
  876,259
  927,001
  979,949
  1,035,224
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
  95,580
  110,418
  126,573
  144,023
  162,740
  182,692
  203,852
  226,192
  249,692
  274,336
  293,296
  320,206
  348,255
  377,456
  407,829
  439,405
  472,222
  506,322
  541,756
  578,585
  616,873
  656,692
  698,119
  741,240
  786,145
  832,931
  881,701
  932,563
  985,633
  1,041,033
Operating income, $m
  -2,289
  -1,043
  318
  1,793
  3,379
  5,073
  6,873
  8,775
  10,779
  12,883
  21,905
  24,206
  26,607
  29,108
  31,712
  34,420
  37,236
  40,165
  43,209
  46,376
  49,669
  53,097
  56,665
  60,381
  64,253
  68,290
  72,500
  76,894
  81,481
  86,273
EBITDA, $m
  10,001
  12,190
  14,579
  17,164
  19,941
  22,904
  26,050
  29,375
  32,875
  36,548
  40,392
  44,407
  48,593
  52,954
  57,492
  62,211
  67,117
  72,217
  77,519
  83,031
  88,763
  94,727
  100,934
  107,397
  114,130
  121,148
  128,466
  136,100
  144,069
  152,391
Interest expense (income), $m
  1,575
  2,801
  3,890
  5,125
  6,470
  7,923
  9,482
  11,144
  12,906
  14,768
  16,726
  18,779
  20,928
  23,170
  25,508
  27,942
  30,474
  33,107
  35,842
  38,685
  41,640
  44,710
  47,903
  51,223
  54,678
  58,274
  62,019
  65,921
  69,988
  74,231
  78,658
Earnings before tax, $m
  -5,090
  -4,933
  -4,806
  -4,677
  -4,544
  -4,409
  -4,271
  -4,131
  -3,988
  -3,842
  3,125
  3,279
  3,437
  3,600
  3,770
  3,946
  4,130
  4,322
  4,524
  4,736
  4,959
  5,194
  5,442
  5,703
  5,979
  6,271
  6,580
  6,906
  7,251
  7,615
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  844
  885
  928
  972
  1,018
  1,065
  1,115
  1,167
  1,222
  1,279
  1,339
  1,402
  1,469
  1,540
  1,614
  1,693
  1,776
  1,865
  1,958
  2,056
Net income, $m
  -5,090
  -4,933
  -4,806
  -4,677
  -4,544
  -4,409
  -4,271
  -4,131
  -3,988
  -3,842
  2,282
  2,393
  2,509
  2,628
  2,752
  2,881
  3,015
  3,155
  3,303
  3,457
  3,620
  3,792
  3,973
  4,163
  4,365
  4,578
  4,803
  5,041
  5,293
  5,559

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
  147,379
  172,787
  200,460
  230,358
  262,431
  296,627
  332,897
  371,197
  411,488
  453,743
  497,947
  544,095
  592,199
  642,281
  694,378
  748,540
  804,831
  863,327
  924,117
  987,300
  1,052,990
  1,121,309
  1,192,392
  1,266,384
  1,343,441
  1,423,730
  1,507,426
  1,594,719
  1,685,805
  1,780,895
Adjusted assets (=assets-cash), $m
  147,379
  172,787
  200,460
  230,358
  262,431
  296,627
  332,897
  371,197
  411,488
  453,743
  497,947
  544,095
  592,199
  642,281
  694,378
  748,540
  804,831
  863,327
  924,117
  987,300
  1,052,990
  1,121,309
  1,192,392
  1,266,384
  1,343,441
  1,423,730
  1,507,426
  1,594,719
  1,685,805
  1,780,895
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
  48,698
  57,093
  66,237
  76,116
  86,714
  98,013
  109,998
  122,653
  135,966
  149,928
  164,535
  179,783
  195,678
  212,226
  229,441
  247,337
  265,937
  285,266
  305,352
  326,230
  347,935
  370,509
  393,997
  418,446
  443,908
  470,437
  498,093
  526,937
  557,034
  588,454
Working capital, $m
  -16,326
  -19,140
  -22,206
  -25,518
  -29,071
  -32,859
  -36,877
  -41,119
  -45,583
  -50,263
  -55,160
  -60,272
  -65,601
  -71,149
  -76,920
  -82,920
  -89,155
  -95,635
  -102,369
  -109,368
  -116,645
  -124,213
  -132,087
  -140,284
  -148,820
  -157,714
  -166,985
  -176,655
  -186,745
  -197,279
Total debt, $m
  72,038
  94,905
  119,811
  146,719
  175,584
  206,361
  239,005
  273,474
  309,736
  347,766
  387,549
  429,083
  472,376
  517,450
  564,337
  613,083
  663,745
  716,392
  771,102
  827,967
  887,088
  948,575
  1,012,549
  1,079,142
  1,148,494
  1,220,754
  1,296,081
  1,374,644
  1,456,622
  1,542,202
Total liabilities, $m
  132,641
  155,508
  180,414
  207,322
  236,187
  266,964
  299,608
  334,077
  370,339
  408,369
  448,152
  489,686
  532,979
  578,053
  624,940
  673,686
  724,348
  776,995
  831,705
  888,570
  947,691
  1,009,178
  1,073,152
  1,139,745
  1,209,097
  1,281,357
  1,356,684
  1,435,247
  1,517,225
  1,602,805
Total equity, $m
  14,738
  17,279
  20,046
  23,036
  26,243
  29,663
  33,290
  37,120
  41,149
  45,374
  49,795
  54,410
  59,220
  64,228
  69,438
  74,854
  80,483
  86,333
  92,412
  98,730
  105,299
  112,131
  119,239
  126,638
  134,344
  142,373
  150,743
  159,472
  168,581
  178,089
Total liabilities and equity, $m
  147,379
  172,787
  200,460
  230,358
  262,430
  296,627
  332,898
  371,197
  411,488
  453,743
  497,947
  544,096
  592,199
  642,281
  694,378
  748,540
  804,831
  863,328
  924,117
  987,300
  1,052,990
  1,121,309
  1,192,391
  1,266,383
  1,343,441
  1,423,730
  1,507,427
  1,594,719
  1,685,806
  1,780,894
Debt-to-equity ratio
  4.890
  5.490
  5.980
  6.370
  6.690
  6.960
  7.180
  7.370
  7.530
  7.660
  7.780
  7.890
  7.980
  8.060
  8.130
  8.190
  8.250
  8.300
  8.340
  8.390
  8.420
  8.460
  8.490
  8.520
  8.550
  8.570
  8.600
  8.620
  8.640
  8.660
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
  -5,090
  -4,933
  -4,806
  -4,677
  -4,544
  -4,409
  -4,271
  -4,131
  -3,988
  -3,842
  2,282
  2,393
  2,509
  2,628
  2,752
  2,881
  3,015
  3,155
  3,303
  3,457
  3,620
  3,792
  3,973
  4,163
  4,365
  4,578
  4,803
  5,041
  5,293
  5,559
Depreciation, amort., depletion, $m
  12,290
  13,233
  14,261
  15,371
  16,562
  17,831
  19,178
  20,600
  22,096
  23,664
  18,487
  20,200
  21,986
  23,846
  25,780
  27,791
  29,881
  32,052
  34,309
  36,655
  39,094
  41,630
  44,269
  47,016
  49,877
  52,858
  55,965
  59,206
  62,588
  66,118
Funds from operations, $m
  7,200
  8,300
  9,454
  10,694
  12,018
  13,423
  14,907
  16,469
  18,107
  19,822
  20,769
  22,594
  24,495
  26,474
  28,532
  30,671
  32,895
  35,208
  37,612
  40,112
  42,714
  45,422
  48,242
  51,180
  54,242
  57,436
  60,769
  64,247
  67,881
  71,678
Change in working capital, $m
  -2,560
  -2,815
  -3,066
  -3,312
  -3,553
  -3,788
  -4,018
  -4,243
  -4,463
  -4,681
  -4,897
  -5,112
  -5,329
  -5,548
  -5,771
  -6,000
  -6,236
  -6,480
  -6,734
  -6,999
  -7,277
  -7,568
  -7,874
  -8,196
  -8,536
  -8,894
  -9,272
  -9,670
  -10,090
  -10,534
Cash from operations, $m
  9,761
  11,115
  12,520
  14,006
  15,571
  17,211
  18,925
  20,711
  22,571
  24,503
  25,665
  27,706
  29,824
  32,022
  34,303
  36,671
  39,131
  41,688
  44,346
  47,112
  49,991
  52,990
  56,116
  59,376
  62,778
  66,330
  70,040
  73,917
  77,971
  82,211
Maintenance CAPEX, $m
  -4,613
  -5,472
  -6,415
  -7,442
  -8,552
  -9,743
  -11,013
  -12,359
  -13,781
  -15,277
  -16,846
  -18,487
  -20,200
  -21,986
  -23,846
  -25,780
  -27,791
  -29,881
  -32,052
  -34,309
  -36,655
  -39,094
  -41,630
  -44,269
  -47,016
  -49,877
  -52,858
  -55,965
  -59,206
  -62,588
New CAPEX, $m
  -7,639
  -8,395
  -9,144
  -9,879
  -10,598
  -11,299
  -11,985
  -12,655
  -13,313
  -13,962
  -14,606
  -15,249
  -15,895
  -16,548
  -17,214
  -17,897
  -18,600
  -19,329
  -20,086
  -20,877
  -21,706
  -22,574
  -23,488
  -24,449
  -25,462
  -26,529
  -27,656
  -28,844
  -30,097
  -31,420
Cash from investing activities, $m
  -12,252
  -13,867
  -15,559
  -17,321
  -19,150
  -21,042
  -22,998
  -25,014
  -27,094
  -29,239
  -31,452
  -33,736
  -36,095
  -38,534
  -41,060
  -43,677
  -46,391
  -49,210
  -52,138
  -55,186
  -58,361
  -61,668
  -65,118
  -68,718
  -72,478
  -76,406
  -80,514
  -84,809
  -89,303
  -94,008
Free cash flow, $m
  -2,492
  -2,752
  -3,039
  -3,315
  -3,579
  -3,832
  -4,073
  -4,303
  -4,524
  -4,737
  -5,787
  -6,030
  -6,271
  -6,513
  -6,757
  -7,005
  -7,260
  -7,522
  -7,793
  -8,075
  -8,370
  -8,678
  -9,002
  -9,342
  -9,700
  -10,077
  -10,474
  -10,892
  -11,333
  -11,797
Issuance/(repayment) of debt, $m
  20,167
  22,867
  24,906
  26,908
  28,865
  30,777
  32,643
  34,469
  36,262
  38,030
  39,783
  41,534
  43,293
  45,074
  46,887
  48,746
  50,662
  52,646
  54,710
  56,865
  59,120
  61,487
  63,975
  66,593
  69,351
  72,260
  75,327
  78,563
  81,978
  85,580
Issuance/(repurchase) of shares, $m
  8,109
  7,474
  7,574
  7,666
  7,751
  7,828
  7,898
  7,961
  8,017
  8,068
  2,139
  2,221
  2,302
  2,380
  2,458
  2,536
  2,614
  2,694
  2,776
  2,861
  2,949
  3,040
  3,136
  3,236
  3,341
  3,451
  3,567
  3,688
  3,816
  3,950
Cash from financing (excl. dividends), $m  
  28,276
  30,341
  32,480
  34,574
  36,616
  38,605
  40,541
  42,430
  44,279
  46,098
  41,922
  43,755
  45,595
  47,454
  49,345
  51,282
  53,276
  55,340
  57,486
  59,726
  62,069
  64,527
  67,111
  69,829
  72,692
  75,711
  78,894
  82,251
  85,794
  89,530
Total cash flow (excl. dividends), $m
  25,784
  27,589
  29,441
  31,259
  33,037
  34,773
  36,469
  38,127
  39,755
  41,361
  36,135
  37,726
  39,324
  40,941
  42,588
  44,276
  46,017
  47,819
  49,694
  51,651
  53,700
  55,849
  58,109
  60,487
  62,992
  65,634
  68,420
  71,360
  74,461
  77,733
Retained Cash Flow (-), $m
  -8,109
  -7,474
  -7,574
  -7,666
  -7,751
  -7,828
  -7,898
  -7,961
  -8,017
  -8,068
  -4,420
  -4,615
  -4,810
  -5,008
  -5,210
  -5,416
  -5,629
  -5,850
  -6,079
  -6,318
  -6,569
  -6,832
  -7,108
  -7,399
  -7,706
  -8,029
  -8,370
  -8,729
  -9,109
  -9,509
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
  17,675
  20,115
  21,867
  23,593
  25,286
  26,945
  28,571
  30,166
  31,738
  33,293
  31,715
  33,111
  34,513
  35,933
  37,378
  38,860
  40,387
  41,969
  43,615
  45,332
  47,131
  49,017
  51,000
  53,088
  55,287
  57,605
  60,050
  62,630
  65,352
  68,224
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
  16,320
  17,019
  16,816
  16,346
  15,637
  14,727
  13,655
  12,467
  11,206
  9,916
  7,861
  6,732
  5,670
  4,692
  3,815
  3,044
  2,382
  1,826
  1,371
  1,006
  721
  504
  344
  228
  147
  92
  56
  33
  19
  10
Current shareholders' claim on cash, %
  72.1
  56.2
  45.1
  37.1
  31.3
  26.8
  23.3
  20.6
  18.3
  16.5
  16.1
  15.7
  15.4
  15.0
  14.7
  14.4
  14.1
  13.9
  13.6
  13.4
  13.2
  13.0
  12.8
  12.6
  12.4
  12.2
  12.0
  11.9
  11.7
  11.6

Dell Technologies Inc., formerly Denali Holding Inc., is a provider of information technology solutions. The Company operates through two segments: Client Solutions and Enterprise Solutions Group (ESG). The Client Solutions segment includes sales to commercial and consumer customers of desktops, thin client products and notebooks, as well as services and third-party software and peripherals closely tied to the sale of Client Solutions hardware. Its offerings include hardware, such as desktop personal computers, notebooks and tablets, and peripherals, such as monitors, printers and projectors, as well as third-party software and peripherals. The ESG segment includes servers, networking and storage, as well as services and third-party software and peripherals that are closely tied to the sale of ESG hardware. It designs, develops, manufactures, markets, sells and supports a range of products and services.

FINANCIAL RATIOS  of  Dell Technologies Cl V (DVMT)

Valuation Ratios
P/E Ratio -48.9
Price to Sales 1.3
Price to Book 6.1
Price to Tangible Book
Price to Cash Flow 36.8
Price to Free Cash Flow 62.1
Growth Rates
Sales Growth Rate 21.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 88%
Cap. Spend. - 3 Yr. Gr. Rate 11.2%
Financial Strength
Quick Ratio 2
Current Ratio 0.1
LT Debt to Equity 319.6%
Total Debt to Equity 366.6%
Interest Coverage -2
Management Effectiveness
Return On Assets -0.7%
Ret/ On Assets - 3 Yr. Avg. -1.4%
Return On Total Capital -4.3%
Ret/ On T. Cap. - 3 Yr. Avg. -8.5%
Return On Equity -22.2%
Return On Equity - 3 Yr. Avg. -51.2%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 21%
Gross Margin - 3 Yr. Avg. 18%
EBITDA Margin 1.9%
EBITDA Margin - 3 Yr. Avg. 3.6%
Operating Margin -5.8%
Oper. Margin - 3 Yr. Avg. -2.5%
Pre-Tax Margin -8.7%
Pre-Tax Margin - 3 Yr. Avg. -4.5%
Net Profit Margin -2.7%
Net Profit Margin - 3 Yr. Avg. -2.4%
Effective Tax Rate 30.2%
Eff/ Tax Rate - 3 Yr. Avg. 16.1%
Payout Ratio 0%

DVMT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DVMT stock intrinsic value calculation we used $78660 million for the last fiscal year's total revenue generated by Dell Technologies Cl V. The default revenue input number comes from 0001 income statement of Dell Technologies Cl V. 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 DVMT stock valuation model: a) initial revenue growth rate of 18.6% 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 DVMT is calculated based on our internal credit rating of Dell Technologies Cl V, 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 Cl V.
    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 DVMT 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 DVMT 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 Cl V.

Corporate tax rate of 27% is the nominal tax rate for Dell Technologies Cl V. 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 DVMT 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 DVMT 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 Cl V 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 DVMT 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 Cl V - 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 199.355 million for Dell Technologies Cl V 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 Cl V at the current share price and the inputted number of shares is $20.9 billion.

RELATED COMPANIES Price Int.Val. Rating
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IBM International 121.44 191.80  buy

COMPANY NEWS

▶ [$$] Dell Sweetens Tracking-Stock Deal After Facing Shareholder Pressure   [Nov-15-18 07:27PM  The Wall Street Journal]
▶ Icahn Ends Battle With Michael Dell   [05:19PM  TheStreet.com]
▶ [$$] Dell plans to sweeten share buyback offer   [07:07AM  Financial Times]
▶ [$$] Dell/VMware: tracker whacker   [01:36AM  Financial Times]
▶ Dell Sweetens Key Deal Terms in Path Back to Public Markets   [01:31AM  The Wall Street Journal]
▶ Who Joins Warren Buffett's Berkshire On This List Of S&P-Beating Stocks?   [Nov-13-18 04:01PM  Investor's Business Daily]
▶ Dell in talks about changing nearly $22B go-public deal, according to reports   [Nov-08-18 09:12AM  American City Business Journals]
▶ Dell Contacts DVMT Investors to Discuss Terms of Deal   [Nov-06-18 09:09PM  Bloomberg]
▶ [$$] Carl Icahn Taking Dell Technologies to Court Over Tracking-Stock Deal   [Nov-01-18 08:30PM  The Wall Street Journal]
▶ [$$] Icahn Sues Dell Technologies Over Tracking-Stock Deal   [12:30PM  The Wall Street Journal]
▶ IBM's Red Hat acquisition leads 5 biggest software M&A deals in history   [09:51AM  American City Business Journals]
▶ Icahn Opposes Deal With Dell   [Oct-19-18 08:00PM  Barrons.com]
▶ [$$] Davos in the Desert gets deserted   [12:15AM  Financial Times]
▶ Activist investor Carl Icahn challenges Dell on planned deal with VMware   [Oct-15-18 11:11PM  American City Business Journals]
▶ Stock Market News Daily Roundup October 15   [12:37PM  Market Exclusive]
▶ Icahn challenges Dell on planned deal with VMware   [09:36AM  American City Business Journals]
▶ Dells Tracker Deal Heads for an Investor Showdown   [Oct-12-18 08:06PM  Barrons.com]
▶ [$$] Doubts on Dell valuation emerged early, filing says   [Sep-25-18 07:57AM  Financial Times]

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