P/E Ratio

A P/E Ratio of 18.9x means investors are paying $18.90 for every $1 of Dell’s annual earnings, a standard measure of how expensive or cheap a stock is relative to its profitability.

This is well below the sector median of 37.0x, placing Dell in the 26th percentile among its technology peers — indicating it is lower-priced than the majority of similar companies. Over the last eight quarters, the ratio has been decreasing: year-over-year change is not available, but quarter-over-quarter it edged up just +0.1%, from 18.9x to 18.9x, essentially flat after a prior drop from 27.2x. The combination of an already depressed P/E (well below the sector median) with a downward trend suggests that earnings have grown or the stock price has fallen relative to earnings, potentially signaling lower risk for value-oriented investors if the trend reverses. This metric supports the overall BULLISH verdict because a low and stable P/E implies the stock is undervalued compared to its sector, leaving room for price appreciation as earnings continue.

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