DELL EV/EBITDA Analysis

EV/EBITDA compares a company’s total value (including debt) to its yearly cash earnings before interest, taxes, depreciation, and amortization — a 21.5x multiple means investors pay $21.50 for every $1 of operating cash flow.

This sits below the sector median of 27.4x, placing DELL at the 42nd percentile among technology peers, so the stock is cheaper than the typical sector company. The metric has been increasing over the last eight quarters, with a quarter-over-quarter rise of 6.7%; the year-over-year change is not available. A below-median multiple combined with an upward trend suggests the market is gradually assigning a higher valuation, which could reflect improving prospects or simply rising optimism. For investors, this mix offers a moderate risk-opportunity profile: the entry point is still reasonable versus peers, but the momentum means the discount is narrowing. This evidence supports the overall NEUTRAL verdict, as the level is favorable while the direction reduces the margin of safety.

Frequently Asked Questions

Closest Sector Peers