Case Study on Dell

Least Resisitance

Dell Case Study

Stop the presses! Before reading Longleaf’s valuation of Dell (linked below), go to the 2009 and 2013 Value-lines and value Dell with a back of the envelope calculation using a post-tax free cash flow yield as one signpost.

What do you think Dell is worth—about?  What do you think of the valuations mentioned in this article? Does growth have value? Why or why not?

Do you have any criticisms?  What in Michael Dell’s prior history makes you (perhaps) not surprised by his current actions? Would you have factored that into your pre-announcement valuation?  How?  Should Dell offer to do a Tender Offer for the shareholders?  If the price callapsed to $9 or $10 based on the deal being pulled what would you do?

Case Study Materials: Dell_VL_2009     Dell_VL_2013   Dell_Valuation_and_Tender_Offer_Case Study

Longleaf Protests: Dell-Board-Letter_by_Longleaf

DELL_Morn: Background on Dell

I will put in my two cents next week in the comments section.  Email prizes awarded.

Update Feb. 11, 2013: Corporate BS:


Common Sense Words about America (not political)

 See what independent thinking, love of history and knowledge plus GUTS can do…..

The Actual Speech:

13 responses to “Case Study on Dell

  1. Pingback: Dell Inc: Not So Fast Mr. Dell | Enterprising Investor

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