Is Dell Stock Priced Right Against Its Peers? Trefis Team Wed, November 11, 2026 at 3:49 PM EST 4 min read DELL +12.60% HPE +4.84% IBM +1.53% CSCO +2.69% AAPL +1.94% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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Dell Technologies (DELL) stock trades at a lower price-to-earnings ratio than four of the five companies on its Trefis peer list: Hewlett Packard Enterprise, IBM, Cisco Systems and Apple. Yet over its latest four quarters, Dell grew revenue faster than all five, HP Inc. included. So is Dell's lower price a bargain for that growth, or a sign the market expects it to fade?
You Pay Less For Dell's Faster Growth
Dell trades at 19.0 times its earnings over its latest four quarters, compared with 22.9 for Hewlett Packard Enterprise, a company in the same hardware industry whose four quarters also ended on July 31, 2026. At that lower price, you get faster growth: Dell's revenue rose 49.0% over those quarters, against 26.6% at Hewlett Packard Enterprise. Dell also kept more of its sales as operating profit, posting a margin of 9.6% against 7.8%.
HP is the one company in the group that costs less than Dell, at 10.7 times earnings, and its revenue grew 8.1%. Every other peer costs more than Dell and grows more slowly, so Dell ranks first of the six on growth and second cheapest on price.
Total Return, Incl. Dividends, 2025-11-07 to 2026-11-10
Most Of Dell's Growth Comes From Servers And Storage
Dell operates two main businesses. The Infrastructure Solutions Group sells servers, storage and networking, while the Client Solutions Group sells PCs. In fiscal 2026, which ended on January 30, 2026, infrastructure revenue rose 39.5% to $60.8 billion, while PC revenue grew 5.4%.
The latest quarter followed the same pattern. Management said infrastructure revenue rose 89% to $31.8 billion in fiscal Q2 2027, which ended on July 31, 2026. AI servers alone brought in $16.4 billion, and Dell ended the quarter with a record $95 billion of AI orders still to ship.
Dell's operating margin ranks fourth in the group, behind Apple, Cisco Systems and IBM. AI servers appear to earn less on each dollar of sales than the rest of what Dell sells. Management expects Dell's gross margin rates for fiscal 2027 as a whole to be up from a year earlier once the effect of the AI server mix is left out. Even so, Dell's operating margin over the latest four quarters is its highest at any of the 40 quarter ends since fiscal Q3 2017. Management names scale as the single biggest reason for the improvement.
For fiscal Q3 2027, management guided revenue of $49 billion at the midpoint, above the $47.0 billion Dell reported for fiscal Q2 2027. Management also raised its full-year revenue guide to $192 billion, up from $167 billion in May.
Management also named the risks, saying Dell is short of parts, memory chips above all, and that some of its server growth comes from higher prices as its own costs rise. Management expects the operating income rate of Dell's PC business to ease to roughly 6% in fiscal Q3 2027. Meanwhile, Dell stock fell 41.9% from October 12 to November 10, 2026, against a 3.6% drop for the S&P 500.
At today's multiple, the price appears to assume Dell's growth will fade toward its peers'. Dell's latest reported figures, all from before the October fall, do not show that yet: it raised its full-year guide in September, and its margin is the highest in Trefis data going back to fiscal 2017. Dell's revenue for fiscal Q3 2027, against the $49 billion it guided, is the number to watch when it reports, expected in November 2026.
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