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Top Down Analysis on Dell . By: Jessica Spears. Consumer Spending. Consumer Spending is down which means? Less people to buy Dells product Long run failure More people saving. Consumer Price Index. The Consumer price index is still going down. Government Spending.
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Top Down Analysis on Dell By: Jessica Spears
Consumer Spending • Consumer Spending is down which means? • Less people to buy Dells product • Long run failure • More people saving
Consumer Price Index • The Consumer price index is still going down.
Government Spending • The company still derives about 80% of its revenue from commercial and government spending. • Purchase Perot systems
Growth Rate • Dell will show revenue increase from 2010-2011
Industry Outlook • Outsourcing to increase profit. • Keeping prices Competitive • Cut Production Costs
Fundamental Analysis • ROA= 4.91% • ROE= 29.36% • P/E= 18.43 • Balance Sheet http://finance.yahoo.com/q/bs?s=DELL+Balance+Sheet&annual • Income Statement http://finance.yahoo.com/q/is?s=DELL+Income+Statement&annual • Cash Flows http://finance.yahoo.com/q/cf?s=DELL+Cash+Flow&annual
Summary • Intrinsic value= $26.36 • Target Value= $17.75 • Buy price= $16
Plans for the future • I want to do more riskier trading • I want to invest in Dell