Date: November 16, 2022
Tech stocks are infamous for their high valuations. But in my search for the perfect tech stock to buy in this current market environment, I found a Deep Value Tech stock that I am seriously considering.
This Stock is Dell, and here are two reasons why I am considering it!
Reason 1: In comparison to other tech giants, I find Dell to be priced relatively well. Where companies like Alphabet and Apple are trading at a valuation of 7 to 9 times their free cash flows, Dell is trading at merely 3.35 times. To give you a better frame of reference, Tesla stock which has been the center of attraction for the last 1 year is trading at approx. 54 times its free cash flow.
Reason 2: In mid of 2022, when many tech companies were struggling to survive the macroeconomic forces, Dell reported more than decent numbers. Not only did Dell report decent growth across all its business segments, but it also reported a sizable reduction in its Capital Debt.
In conclusion, If deep value tech stocks are appealing to you, give Dell stock a look.
