DELL — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($147.59)
DCF	$-727.32	-592.8%
Graham Number	—	—
Reverse DCF	—	—
DDM	$51.91	-64.8%
EV/EBITDA	$304.72	+106.5%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$1.36B

Near-term growth (yrs 1–5)(%)Rev: 39.5% / EPS: 45.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.58%

Computed WACC: 7.58%

Cost of equity (Re)10.00%(Rf 4.30% + β 1.04 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)75.84%

Debt weight (D/V)24.16%

Results

Intrinsic Value / share$-969.13

Current Price$147.59

Upside / Downside-756.6%

Net Debt (used)$19.98B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	37.4%	41.4%	45.4%	49.4%	53.4%
7.0%	$-857.58	$-978.45	$-1113.65	$-1264.44	$-1432.11
8.0%	$-684.50	$-778.71	$-884.07	$-1001.54	$-1132.13
9.0%	$-566.31	$-642.33	$-727.32	$-822.06	$-927.36
10.0%	$-480.94	$-543.83	$-614.13	$-692.46	$-779.51
11.0%	$-416.71	$-469.74	$-528.98	$-594.99	$-668.32

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $7.48

Book Value / share($)Yahoo: $-3.70

Results

Graham Number requires positive EPS and positive Book Value per share. BVPS is zero or negative.

Graham Number—

Current Price$147.59

Margin of Safety—

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.58%

Terminal growth rate(%)

Computed WACC: 7.58%

Cost of equity (Re)10.00%(Rf 4.30% + β 1.04 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)75.84%

Debt weight (D/V)24.16%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$147.59

Implied Near-term FCF Growth—

Historical Revenue Growth39.5%

Historical Earnings Growth45.4%

Base FCF (TTM)-$1.36B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $2.52

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$51.91

Current Price$147.59

Upside / Downside-64.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $8.65B

Target EV/EBITDA multipleCurrent: 14.1×

Net Debt($B)Default: $19.98B

Results

Implied Equity Value / share$304.72

Current Price$147.59

Upside / Downside+106.5%

Implied EV$121.73B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$9.98B	$14.98B	$19.98B	$24.98B	$29.98B
10.1x	$231.10	$216.13	$201.15	$186.18	$171.20
12.1x	$282.88	$267.91	$252.94	$237.96	$222.99
14.1x	$334.67	$319.70	$304.72	$289.75	$274.77
16.1x	$386.45	$371.48	$356.51	$341.53	$326.56
18.1x	$438.24	$423.27	$408.29	$393.32	$378.34

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