Using the industry peer median P/E multiple (trailing + forward), Dell Technologies Inc. (DELL) has a fair value of $402.78 based on 5 comparable companies in the Computer Hardware industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Dell Technologies Inc.DELL | 124,275 | 20.9x | 17.8x |
| Analog Devices, Inc.ADI | 154,224 | 69.3x | 49.8x |
| Western Digital CorporationWDC | 93,307 | 53.8x | 31.0x |
| Seagate Technology Holdings plcSTX | 83,285 | 56.4x | 29.5x |
| Cadence Design Systems, Inc.CDNS | 76,822 | 69.4x | 39.9x |
| Motorola Solutions, Inc.MSI | 75,136 | 35.4x | 33.0x |
| Industry Median | 56.4x | 33.0x | |
| (*) Profit after tax | 5,936 | 6,999 | |
| Equity Value | 334,867 | 230,635 | |
| (/) Outstanding shares | 702 | 702 | |
| Fair Price | $477 | $329 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.