Dell Technologies Inc. (NYSE:DELL)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio exhibits considerable variability throughout the observed periods. It shows an initial increase from 6.21 in January 2020 to a peak of 23.01 in October 2020, followed by a gradual decline to a low of 5.08 in October 2021. Subsequently, the ratio increases again, reaching a maximum of 26.87 in November 2023, before experiencing moderate fluctuations and ending at 16.72 in May 2025. This pattern suggests periods of fluctuating market expectations regarding earnings growth or changes in earnings performance.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio follows a somewhat similar trajectory to the P/E ratio but with less pronounced peaks. Starting from 10.93 in January 2020, it rises steadily to about 14.47 in July 2021, then declines sharply to a nadir of 4.98 in October 2022. After this low, the ratio climbs again, reaching close to 18.45 by November 2024, before tapering down to 11.86 in May 2025. These movements may reflect changes in operating profitability in relation to share price valuation over time.

Price to Sales (P/S) Ratio

The Price to Sales ratio starts at a low base of 0.31 in January 2020 and increases steadily to a peak of 0.83 in July 2021. After this peak, it declines to approximately 0.26 by October 2022, followed by a recovery that sees it rise to more than 1.00 in November 2024. The ratio then declines slightly but remains elevated relative to earlier levels, stabilizing near 0.80 by May 2025. This trend suggests cycles of market valuation relative to sales revenue, with peaks possibly indicating periods of optimistic sales growth expectations.

Price to Book Value (P/BV) Ratio

Available data for this ratio is incomplete and confined to a brief portion of the timeline. It shows very high initial values, beginning with 59.76 in January 2021 and decreasing consistently to 4.99 by January 2022. The sharp decline in this ratio over a short period might indicate a substantial change in either market capitalization relative to book value or a reevaluation of the book value itself. No data is available beyond this point to evaluate any longer-term trend.

Share Price Trend

The share price experienced significant fluctuations throughout the observed periods. Initially, it showed moderate growth from approximately $54.2 to a peak near $102.84 by April 2021. Following this peak, the share price saw a decline, bottoming around $37.65 by July 2022. Subsequently, there was a recovery phase with notable increases, reaching a substantial peak of $131.64 in May 2024, before slightly declining towards the later periods but maintaining values above $98.

Earnings Per Share (EPS) Trend

EPS data starts from January 31, 2020, at 6.24 US$, displaying variability over time. After a peak at 8.89 in October 2021, EPS fluctuated downward, reaching a low of 2.56 in February 2023. From this point, EPS gradually improved, achieving 6.77 by May 2025. The pattern shows cyclical behavior, with a tendency for recovery after periods of decline, indicating earnings volatility.

Price to Earnings (P/E) Ratio Trend

The P/E ratio varied widely, reflecting the interplay between share price and earnings. Initially high at 23.01 in October 2020, it declined to 5.08 by October 2022, coinciding with lower share prices and recovering EPS. A sharp increase followed, peaking at 26.87 in November 2023, indicating either increased valuation or lower earnings relative to price. After this peak, the ratio moderated, settling near 16.72 by May 2025.

Insights on Relationship Between Metrics

The share price and EPS exhibited some correlation, with share price generally rising when EPS increased and declining when EPS decreased, though not perfectly aligned at all points. The P/E ratio's volatility suggests market sentiment and valuation dynamics influenced by other factors beyond earnings alone. Particularly, during periods of low EPS, the P/E ratio tended to spike, reflecting market uncertainty or expectations of earnings recovery.

The analysis of the quarterly financial data reveals distinct trends in share price, operating profit per share, and the price-to-operating profit ratio over the observed periods.

Share Price Trends (US$)

The share price exhibited considerable volatility. Starting at $54.20 in May 2019, it experienced an initial decline, reaching a low around January 2020 at $38.75. Subsequently, the share price followed a generally upward trajectory, peaking notably at $102.84 in April 2021. After this peak, a period of decline ensued, with the price dropping to approximately $37.65 by July 2022. Following this trough, the share price recovered strongly, reaching its highest recorded value of $131.64 in January 2025. The pattern indicates cycles of sharp rises and falls, with the most recent data reflecting robust recovery and growth.

Operating Profit per Share (US$)

Operating profit per share data commences from January 2020, starting at $3.55. From this point, the operating profit per share shows a consistent upward trend, increasing steadily to $9.55 by May 2025. This steady growth suggests improving operational efficiency or profitability over the analyzed period. Fluctuations were relatively minor compared to share price changes, indicating stable operational performance enhancements.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio, beginning at 10.93 in January 2020, experienced oscillations in line with changes to share price and operating profit. Initially rising to a peak around mid-2020 at 14.47, the ratio then declined significantly, dropping to a low of approximately 4.98 in October 2021. This decline corresponds with a period of rising operating profits and decreasing share prices, reflecting a temporarily increased earnings-relative value. From late 2021 onward, the P/OP ratio rose again, reaching highs above 18 in late 2023, before moderating to a range of 11–15 in early 2025. These variations illustrate shifts in market valuation relative to operational earnings, indicating changing investor sentiment or market dynamics affecting stock pricing independently of operating profits.

In summary, the data reveals that although the share price experienced marked volatility, operating profits per share steadily improved, leading to varying valuations as reflected in the P/OP ratio. The recent periods show strong recovery in share price accompanied by continued increases in operating profitability, culminating in moderate valuation multiples, suggesting balanced market expectations relative to earnings performance.

The financial data exhibits notable variations in share price, sales per share, and the price-to-sales (P/S) ratio over the examined periods.

Share Price Trends

The share price demonstrated significant fluctuations throughout the timeline. Beginning at $54.20 in May 2019, it experienced an initial decline to a low of $38.75 by January 2020, followed by a strong growth phase that peaked at $102.84 in April 2021. Post-peak, there was a marked decrease to values in the low $30s and $40s by late 2022 and early 2023. Subsequently, the share price displayed a recovery trend, advancing steadily to reach $131.64 in May 2024 before experiencing moderate declines and rebounds, ending at $113.25 in May 2025. These oscillations suggest periods of volatility with distinct phases of growth and correction.

Sales Per Share Patterns

Sales per share data, available from May 2020 onwards, indicate a generally upward trajectory with relatively stable increments. Values increased from $124.62 in May 2020 to $146.98 by January 2023, showing consistent revenue growth at the per-share level. Following this peak, a subtle decrease is observed, with sales per share trending downward through 2023, hitting approximately $123.88 in May 2024. The subsequent periods show a recovery trend, culminating at $142.45 in May 2025. This pattern suggests underlying growth with some cyclicality or moderation in sales performance before a return to growth.

Price-to-Sales (P/S) Ratio Dynamics

The P/S ratio exhibits considerable variability across the observed periods. Early data, from May 2020, reflects an initial increase from 0.31 to a peak of 0.83 by April 2021, indicating a growing market valuation relative to sales. However, this was followed by a sharp decline to a low of 0.26 in October 2022, coinciding with the observed troughs in share price. The ratio then experienced a recovery phase, rising to a high of 1.04 in May 2024, suggesting a period during which market valuation outpaced sales growth. The ratio slightly decreased thereafter, stabilizing around 0.7 to 0.8 by May 2025. Overall, the fluctuating P/S ratio illustrates changing investor sentiment and market perceptions of the company's sales efficiency in relation to its stock price.

The share price of the company exhibits notable volatility throughout the observed periods. Initially, the price fluctuates moderately around the mid-50s to high 40s USD range during 2019, followed by a decline in early 2020 to below 40 USD. Subsequently, a strong recovery phase is observed, with the share price reaching its peak above 130 USD in early 2025. Despite intermittent declines, the general trajectory from mid-2020 to early 2025 is upward, indicating periods of increased market confidence or improved financial performance.

The book value per share (BVPS) data show considerable variability and generally negative values for most periods. In the initial time frames, BVPS is negative and trends toward less negative or near-zero values around late 2020 and early 2021, even turning slightly positive for a brief time. However, starting from early 2022 onwards, BVPS returns to negative territory and remains negative, indicating recurring issues with net asset value per share and possible challenges in asset valuation or accumulated losses affecting book equity per share.

The price-to-book value (P/BV) ratios are only available for limited early periods primarily around late 2020 and early 2021. These ratios are extremely high, ranging from approximately 5 to nearly 60. Such elevated multiples suggest that market valuations were substantially above the book value during this time, potentially reflecting strong investor expectations despite negative or marginal book value metrics. The absence of P/BV data in later periods could be due to persistently negative book values, which complicate the calculation or interpretation of this ratio.

Overall, the financial data reveal a share price characterized by recovery and growth after initial volatility, contrasted with ongoing struggles in maintaining positive book value per share. The high P/BV multiples observed at certain points underscore a disconnect between market valuation and book valuation, hinting at possible market optimism or intangible assets not captured on the balance sheet. The persistently negative book value in the majority of periods may warrant further examination of the company's financial structure and asset management strategies.