Dell Technologies (DELL) Could Be 18% Undervalued Following Bylaw Changes

Dell Technologies (DELL) recently amended its bylaws to opt into Section 21.373 of the Texas Business Organizations Code, setting specific ownership, holding period, and solicitation thresholds for shareholders who want to submit proposals.

See our latest analysis for Dell Technologies.

Those bylaw changes arrive after a sharp run up in Dell Technologies, with the share price at $396.34 and a very large year to date share price return of 210.13%, alongside a multi year total shareholder return above 7x, even as the 7 day share price return fell 8.88% and the 30 day share price return declined 3.21% during a period of broader selling in AI related technology stocks.

If Dell’s AI and infrastructure story has your attention, it can be useful to see what else is moving in related areas through the 54 AI infrastructure stocks

For Dell Technologies, the question now is whether the huge multiyear rerating reflects a sturdier AI driven infrastructure business or enthusiasm that moved faster than fundamentals. That is where the valuation work starts.

Most Popular Narrative: 18.1% Undervalued

On the most followed narrative, Dell Technologies screens as undervalued, with a fair value of $483.83 against the last close at $396.34, putting its AI driven infrastructure story in focus.

The analysts have a consensus price target of $483.83 for Dell Technologies based on their expectations of its future earnings growth, profit margins and other risk factors.

However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $700.0, and the most bearish reporting a price target of just $213.0.

Read the complete narrative.

Want to understand why this fair value sits well above today’s price? The narrative leans heavily on faster revenue growth, higher margins, and a richer future earnings multiple. Curious how those moving parts balance out against Dell Technologies’ current AI server momentum and PC exposure?

Result: Fair Value of $483.83 (UNDERVALUED)

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

However, Dell Technologies still faces margin pressure from its AI server mix and exposure to a cyclical PC segment, which could cap earnings if demand or pricing weakens.

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

Next Steps

If this Dell Technologies story appears balanced between risk and reward, consider taking action now and reviewing the underlying data yourself. You can start with 3 key rewards and 3 important warning signs.

Looking for more investment ideas beyond Dell Technologies?

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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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