Aug. 7 at 2:34 AM
$SMCI $DELL With DELL i expect a max revenue of
$220B for the year, they wont really outprice the 17% gross area, and their OPEX is pretty consistent at that gross margin it may come down a tad with higher revenues so around 8% net margins seems pretty realistic.
So 220b x 8% net =
$17.6B net for FY27, however they also have a negative net trade balance of around 25% payables to receivables they need to manage and will likely need to pay suppliers so reported net income will likely be around the
$10B area. This will make their net trade balance more manageable.
10b/660m shares= EPS of
$15.15
$15.15 x 15 PE =
$227 per share
$15.15 x 20 PE =
$303 per share.
Once you find that mid point thats likely a buy zone, anything under that you load up.
Right now its priced at around a 20 PE on
$220B if you do not include any debt repayments.
