Dell Inc. (DELL) reported decent fourth quarter numbers, with earnings per share (EPS) and revenues moving up from the year-ago quarter. New products, a stronger services business, opportunities in the Electronic Medical Record sector, along with the introduction of Dell Streak were the achievements of the year.
Dell also benefited from the expanded customer base that resulted from the Perot acquisition. The stock is trading at a 42.7% discount to the peer group based on forward earnings estimate for 2011. Dell is currently trading at a P/E multiple of 9.2x our fiscal 2011 EPS estimate of $1.60.
We have an Outperform rating on Dell with a target price of $18.00, which represents a multiple of 11.3x fiscal 2011 EPS estimate, below the industry average and S&P 500.
DELL INC (DELL): Free Stock Analysis Report
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