Dell Inc

Dell has been beaten down pretty badly in recent times. This proves to be an exciting opportunity for investors as it may be of value to certain groups of investors.

Its current share price is $25 and it once traded as high as $43 in '05.

Without doing any form of DCF calculation, Michael Dell bought 70 million dollars worth of Dell's shares in the open market at a price of $23.99. You can verify this by looking at www.secform4.com . This serves as an indicator that this chap is confident that it is undervalued.

Other indicators of it being undervalued is when investing geniuses buy it as well. The gurus who bought it include Ron Baron, Charles Brandes, Richard Pzena and more.

With the slew of corporate actions taking place in Dell possibly serving as catalyst for a up shoot in the stock price, Dell is definitely worth taking a closer look at.

Trading at a PE ratio of 18.79 and with current earnings per share at 1.46 for 2006. Projecting eps to grow at an approximate rate of 10% a year which is lower than the annual compounded growth of 22% a year, Dell might be trading at a price of $44.18 in 5 years. Please bear in mind that this is just preliminary analysis. With Dell's decreasing moat due to competition from Hewlett Packard, one can forsee a slight decrease in intrinsic value too. If Dell does trade at 44.18 in 5 years time, that's a Compounded annual growth rate of 13% a year.