Tomahawk, WI 8/05/2013 (Basicsmedia) – Investors often have to consider whether the stock they own is undervalued or overvalued. This is because of the fact that there are times when valuation is not done based on actual data but on other things. Dell Inc. (NASDAQ:DELL) is a globally known company which serves its customers fully by selling and distributing a wide range of technological solutions. The company is quoted on the Nasdaq, and has employed more than 108,000 people to work full time in order to serve their clients with what they offer in terms of products and services. This article seeks to provide answers as to whether DELL is undervalued or not.

DELL has to face off with some very serious and just as equally easily recognizable competitors, some of which are Acer Incorporated, Hewlett Packard Company and Lenovo Group Limited. The range of customers served by Dell worldwide is quite impressive and includes some of the best known national as well as global corporate, governments, health care providers, educational institutions, Law enforcement agencies in addition to end users and both the small and medium businesses. It is with these services that Dell is thus able to provide its growing list of customers located all over the world.

Has Michael Dell’s Buyout Affected Dell’s valuation?

Michael Dell, as the founder of this company, has undertaken to buy it back. He has to work hard to assure shareholders that the offer to buy is in their best interest. This is a company whose stock has been on the decline and struggles quite a lot in the recent past. Call buyers and sellers have placed an average demand on Dell stock, while put buyers have indicated an inclination towards high demand, whereas put sellers have put forth a low demand for the same. Regardless of which buyer or seller is in question, the outlook is quite bearish, and this is the direction the stock is likely to take going forward.


This figure shows the not-so-pleasant trajectory of Dell stock.

Picture is courtesy of

Is Dell’s Undervaluation due to the Stagnant Stock?

As stories regarding the buyout of Dell shares by its founder, Michael Dell, continue to abound, it is notable that this scenario is leading to a situation where stagnant stock is being produced. There has been a notable decline in the earnings and revenue figures as released and declared by Dell. This hasn’t been good or pleasant to investors. No matter what happens in this industry in the next few months, what I can categorically say to investors is for them to develop a wait and see attitude or approach. There is no need to write it off as an investment which doesn’t produce the expected returns.

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