Dell Inc. (DELL) At a Glance

Valuations and Metrics

Although Dell is facing many headwinds, the stock is currently a bargain at the moment. The P/E is around 10 times trailing earnings, while Hewlett-Packard Company (NYSE:HPQ) has a negative ratio and Lenovo trades at around 16.34. Dell’s price to sales of 0.41 is very low, while the return on equity of 24.18% is fair. The company has around $9.08 billion in debt and $12.78 billion in cash.

The Bottom Line

PC sales are still proving to be very slow for Dell amid a takeover battle between founder Michael Dell and activist investor Carl Icahn. The most recent earnings report reflected these poor sales. On the other hand, the company’s Enterprise Solutions segment has been seeing some fairly decent growth, which may support the founder’s case to take the company private in order to focus on this division, away from public scrutiny.

The article Not All Is Lost for This PC Maker originally appeared on and is written by Daniel James.

Daniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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