Is Dell Technologies, Inc. overvalued or undervalued?

As of 24 February 2022, the valuation grade for Dell Technologies, Inc. has moved from very attractive to risky, indicating a shift in investor sentiment. The company is currently considered overvalued given its P/E ratio of 18, which is higher than its peer HP, Inc. at 8.00. Additionally, Dell's EV to EBITDA stands at 12.49, while HP's is lower at 7.14, further highlighting the disparity in valuation between these two companies.
Dell's price to book value is notably negative at -30.90, which raises concerns about its asset valuation. The company's return on capital employed (ROCE) is strong at 37.90%, but this is overshadowed by its negative return on equity (ROE) due to the negative book value. Overall, based on these metrics and the peer comparison, Dell Technologies appears to be overvalued in the current market environment.