Discounted Cash Flow (DCF) Analysis Unlevered

Dell Technologies Inc. (DELL)

$45.46

-1.81 (-3.82%)

All numbers are in Millions, Currency in USD

Stock DCF: -29,899.03 | 45.46 | overvalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	90,621	92,154	94,224	101,197	102,301	105,479.82	108,757.42	112,136.87	115,621.32	119,214.05
Revenue (%)
EBITDA	7,744	7,901	11,194	12,637	6,401	10,072.04	10,385.01	10,707.71	11,040.43	11,383.49
EBITDA (%)
EBIT	-2	1,758	5,804	8,086	3,245	4,056.25	4,182.29	4,312.25	4,446.25	4,584.41
EBIT (%)
Depreciation	7,746	6,143	5,390	4,551	3,156	6,015.79	6,202.72	6,395.46	6,594.18	6,799.09
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	9,676	9,302	14,201	9,477	8,607	11,311.92	11,663.42	12,025.84	12,399.52	12,784.81
Total Cash (%)
Account Receivables	16,769	17,379	17,943	18,132	17,763	19,342.28	19,943.31	20,563.01	21,201.97	21,860.78
Account Receivables (%)
Inventories	3,649	3,281	3,402	5,898	4,776	4,576.63	4,718.85	4,865.48	5,016.66	5,172.54
Inventories (%)
Accounts Payable	19,213	20,065	21,696	27,143	18,598	23,417.03	24,144.68	24,894.93	25,668.49	26,466.10
Accounts Payable (%)
Capital Expenditure	-1,497	-2,576	-2,082	-2,796	-3,003	-2,606.46	-2,687.45	-2,770.96	-2,857.06	-2,945.84
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 45.46
Beta	0.975
Diluted Shares Outstanding	767
Cost of Debt
Tax Rate	24.28
After-tax Cost of Debt	3.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.294
Total Debt	29,588
Total Equity	34,867.82
Total Capital	64,455.82
Debt Weighting	45.90
Equity Weighting	54.10
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	90,621	92,154	94,224	101,197	102,301	105,479.82	108,757.42	112,136.87	115,621.32	119,214.05
EBITDA	7,744	7,901	11,194	12,637	6,401	10,072.04	10,385.01	10,707.71	11,040.43	11,383.49
EBIT	-2	1,758	5,804	8,086	3,245	4,056.25	4,182.29	4,312.25	4,446.25	4,584.41
Tax Rate	2.16%	115,500.00%	11.44%	6.08%	24.28%	23,108.79%	23,108.79%	23,108.79%	23,108.79%	23,108.79%
EBIAT	-1.96	-2,028,731.70	5,139.78	7,594.53	2,457.14	-933,295.05	-962,295.55	-992,197.18	-1,023,027.95	-1,054,816.73
Depreciation	7,746	6,143	5,390	4,551	3,156	6,015.79	6,202.72	6,395.46	6,594.18	6,799.09
Accounts Receivable	-	-610	-564	-189	369	-1,579.28	-601.03	-619.70	-638.96	-658.81
Inventories	-	368	-121	-2,496	1,122	199.37	-142.21	-146.63	-151.19	-155.88
Accounts Payable	-	852	1,631	5,447	-8,545	4,819.03	727.64	750.25	773.57	797.60
Capital Expenditure	-1,497	-2,576	-2,082	-2,796	-3,003	-2,606.46	-2,687.45	-2,770.96	-2,857.06	-2,945.84
UFCF	6,247.04	-2,024,554.70	9,393.78	12,111.53	-4,443.86	-926,446.61	-958,795.88	-988,588.76	-1,019,307.41	-1,050,980.58
WACC
PV UFCF						-872,196.02	-849,793.81	-824,891.40	-800,718.74	-777,254.43
SUM PV UFCF										-4,124,854.40

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.22
Free cash flow (t + 1)	-1,072,000.19
Terminal Value	-25,402,848.16
Present Value of Terminal Value	-18,786,718.46

Intrinsic Value

Enterprise Value	-22,911,572.86
Net Debt	20,981
Equity Value	-22,932,553.86
Shares Outstanding	767
Equity Value Per Share	-29,899.03