Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTMark R. Hake, CFASun, July 5, 2026 at 3:30 PM GMT+2 5 min readDell Technologies by Gustianto via ShutterstockDell Technologies (DELL) stock still looks undervalued, based on free cash flow analysis and analysts' revenue forecasts. Moreover, shorting 2-week puts at a 6% out-of-the-money (i.e., lower) DELL strike price yields over 3.8%. This article will show how this play works.DELL closed at $392.32 on Thursday, July 2, off from a June 1 peak of $465.96 (i.e.,-15.8%), after its May 28 Q1 earnings release., But it's well up from May 27, when it closed at just $305.32 (+28.5%).More News from BarchartDAL Earnings Play: Using Puts to Get Paid While You WaitIs Microsoft Stock Too Cheap Here? One Play is to Short Cash-Secured MSFT PutsHas the Bond Market Missed the Oil Collapse? The Case for Lower Treasury Yields Into Early SeptemberMarkets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines.DELL stock - last 3 months - Barchart - July 2, 2026Higher FCF and FMV Estimates for Dell StockI have written two Barchart articles, showing what DELL stock could be worth (i.e., its fair market value or price target), as well as a strategy to play it: i.e., short one-month out-of-the-money puts. For example, in a June 1 Barchart article, "Dell Stock Could Be Worth 30% More - Based on Strong AI Demand and FCF," I showed that DELL stock could be worth $544.47 per share. That was based on analysts' 2027 revenue forecasts on a 7.05% FCF margin, to reach a $13.0 billion FCF estimate. Next, after applying a 3.5% FCF yield metric (and discounting the price target by 5% for the time value of money), the fair market value (FMV) was estimated to be $371.4 billion. (Today, its market cap, according to Yahoo! Finance, is $254.79 billion.)However, since then, analysts have raised their revenue forecasts to $190.31 billion, so using a 7% FCF margin, 2027 FCF would be:$190.31b x 0.07 = $13.32 billion '27 FCFAfter applying a higher 3.70% FCF yield (i.e., multiplying FCF by 27x) (i.e., a slightly lower metric) and discounting it by 5%, the FMV is $341.7 billion:$13.32b x 27 = $359.64b x 0.95 = $341.658b FMVThat's almost $87 billion higher than today's market cap of $254.79 billion, or 34% higher. In other words, the price target (PT) is 34% higher than last week's close:$392.32 price x 1.34 = $525.71 price target (PT)Analysts Agree DELL is UndervaluedAnalysts have raised their PTs in the last 2 weeks. For example, in my June 16 Barchart article, "Dell Stock Looks Cheap Here With Higher Analyst Forecasts - Short Put Plays Are Attractive," Yahoo! Finance reported that the average of 27 analysts was $483.83. Now, that average is up to $485.09. Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info