The Trump administration has recently granted tariff exemptions for several high-tech imports, including smartphones, laptops, semiconductor equipment, and other electronics. This move stands to benefit companies such as Dell Technologies.
Despite a steep 30% decline this year amid tariff and trade war concerns, we believe DELL stock—currently priced around $88—offers a strong buying opportunity, albeit with certain risks. While our assessment of the stock’s valuation in light of its recent operational performance and financial standing highlights weaknesses in areas like Growth, Profitability, Stability, and Downturn Resilience (outlined below), its current low valuation makes it appealing. For investors preferring lower volatility than single-stock exposure, the Trefis High-Quality portfolio offers a compelling alternative — having outperformed the S&P 500 with over 91% total returns since inception.
How Does Dell Technologies’ Valuation Look vs. The S&P 500?
Based on sales and profits, DELL stock appears significantly undervalued when compared to the broader market.
- Dell Technologies trades at a price-to-sales (P/S) ratio of 0.6, whereas the S&P 500 stands at 2.8
- The company’s price-to-operating income (P/EBIT) ratio is 8.9, compared to 21.3 for the S&P 500
- Its price-to-earnings (P/E) ratio is 12.1, below the S&P 500’s 21.3
How Have Dell Technologies’ Revenues Grown Over Recent Years?
Dell Technologies’ Revenues have exhibited some growth in recent years.
- Revenue has contracted at an average annual rate of 1.5% over the past three years (vs. 6.2% growth for the S&P 500)
- Revenue rose 8.1% from $88 billion to $96 billion over the last 12 months (vs. 5.3% for the S&P 500)
- Quarterly revenue increased 7.2% to $24 billion in the latest quarter from $22 billion a year prior (vs. 4.9% growth for the S&P 500)
How Profitable Is Dell Technologies?
Dell Technologies’ margins are notably below average relative to other companies tracked by Trefis.
Does Dell Technologies Look Financially Stable?
Dell Technologies’ balance sheet appears relatively weak.
- The company holds $25 billion in debt as of the last quarter, against a market cap of $58 billion (as of 4/11/2025), resulting in a high Debt-to-Equity Ratio of 44.3% (vs. 21.5% for the S&P 500)
- It holds $3.6 billion in cash and equivalents, representing a low Cash-to-Assets Ratio of 4.6% (vs. 15.0% for the S&P 500)
How Resilient Is DELL Stock During A Downturn?
DELL stock has fared slightly better than the S&P 500 during some past market downturns. While hopes are pinned on a soft economic landing, investors may wonder how much worse things could get in a recession. Our dashboard How Low Can Stocks Go During A Market Crash explores how top stocks performed in the last six market crashes.
Inflation Shock (2022)
- DELL stock declined 44.4% from $60.77 (Feb 9, 2022) to $33.77 (Oct 12, 2022), vs. a 25.4% drop in the S&P 500
- The stock fully rebounded by Sep 1, 2023
- It then surged to a high of $179.21 on May 29, 2024, and now trades near $88
Covid Pandemic (2020)
- DELL stock dropped 45.9% from $26.87 (Feb 19, 2020) to $14.54 (Mar 18, 2020), vs. a 33.9% S&P 500 decline
- The stock fully recovered by June 29, 2020
Putting All The Pieces Together: What It Means For DELL Stock
Here’s how Dell Technologies measures up across key categories:
- Growth: Strong
- Profitability: Very Weak
- Financial Stability: Very Weak
- Downturn Resilience: Neutral
- Overall: Neutral
Despite certain risks stemming from its underwhelming performance in profitability and financial strength, DELL stock’s deeply discounted valuation makes it a potentially attractive buy. Additional upside could come from recently announced tariff exemptions for electronics, along with Dell’s $10 billion share repurchase program and dividend increase announced last month.
While DELL stock has promise, single-stock investments come with risk. In contrast, the Trefis High Quality Portfolio, which includes 30 stocks, has consistently outperformed the S&P 500 over the past four years. What’s the secret?These HQ Portfolio stocks tend to deliver higher returns with lower volatility — a smoother ride, as demonstrated by the HQ Portfolio performance metrics.
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