Dell Inc. (DELL)
Discount cash flow analysis
Sensitivity matrix
|
-1% |
Discount Rate % 0% |
1% |
||
|---|---|---|---|---|
| -1% | $17.54 | $17.37 | $17.21 | |
| Terminal Growth% | 0 | $17.59 | $17.41 | $17.25 |
| +1% | $17.63 | $17.45 | $17.28 |
How does a change in discount rate or terminal growth affect valuation?
This table shows the sensitivity of the valuation to two key variables - the discount rate and the terminal growth rate
Valuations and comments
- GordonGekko created a new valuation of $15.80 (undervalued by 15.84%) - almost 11 years ago
- diegovillagran created a new valuation of $24.24 (undervalued by 83.92%) - almost 11 years ago
- diegovillagran created a new valuation of $10.61 (overvalued by 19.5%) - almost 11 years ago
- macalex12 created a new valuation of $12.70 (overvalued by 11.31%) - 11 years ago
- macalex12 created a new valuation of $11.71 (overvalued by 18.23%) - 11 years ago
- jdlong43 created a new valuation of $9.70 (overvalued by 26.96%) - over 11 years ago
- SethWellbourne created a new valuation of $11.59 (undervalued by 22.13%) - over 11 years ago
- GordonGekko created a new valuation of $9.21 (overvalued by 0.97%) - 12 years ago
- TheCrunchBlog created a new valuation of $19.24 (undervalued by 26.16%) - 12 years ago
- GordonGekko created a new valuation of $19.09 (undervalued by 25.18%) - 12 years ago
- KiwiEMH created a new valuation of $19.36 (undervalued by 14.35%) - 12 years ago
- GordonGekko created a new valuation of $16.23 (overvalued by 2.41%) - 12 years ago
- GordonGekko created a new valuation of $17.41 (overvalued by 3.22%) - 12 years ago
- GordonGekko created a new valuation of $25.84 (undervalued by 0.82%) - over 12 years ago
- TheCrunchBlog created a new valuation of $23.94 (undervalued by 3.82%) - over 12 years ago
- TheCrunchBlog created a new valuation of $24.24 (undervalued by 27.04%) - over 12 years ago
- GordonGekko created a new valuation of $20.69 (undervalued by 8.44%) - over 12 years ago
- BudFox1987 created a new valuation of $18.42 (overvalued by 3.31%) - over 12 years ago
Comments
The boring details
| All amounts in millions | Figures |
| Enterprise Value: | 0 |
| Net Debt (Long-term borrowings less cash): | -7,385 |
| Equity Value: | 35,230 |
| Number of Shares Outstanding: | 1,958,000,000 |
| Calculated value per share: | $17.41 |
Enterprise Value is the present value of the post-tax cash flows for a business into the future.
Where:
- C1, C2, C3 - the cash flow in period 1, 2, 3, ...
- r - the discount rate
To capture the cash flows into the future a terminal value is calculated via a perpetuity calculation -
based on the final years forecast post-tax free cash flow.
Where:
- Cn - the cash flow in the final forecast period.
- LTG - the long-term growth rate
- r - the discount rate
- g - the terminal growth rate
The Capital Asset Pricing Model (CAPM) is used to determine the equity component in the discount rate.
Where:
- rt - the risk free rate
- t - the tax rate
- B - the beta of the company
- MRP - the Market Risk Premium
Valuecruncher uses an estimate of Weighted Average Cost of Capital (WACC) to determine the discount rate in the calculation.