All in all it adds up to potent combination. When looking at various ways to value Dell, many calculations using their existing ratios such as ROE give a ridiculously high valuation. Dell are in the business of selling commodity products, being personal computers, servers and workstations, and notebooks. Their efficient business model and superior customer service puts them ahead of their competitors. It also allows them to grow faster than the market average, as they take market share form bigger, less nimble, companies.
Any valuation comes down to sales growth.
The price of computers is on the decline, but so are the components that go into a computer, such as the processor. Dell are able to maintain, and even slightly increase their margins, whilst growing sales rapidly. This is no mean feat. It is all very well increasing sales, but if it is at the expense of margins, eventually something has to give. Dell are outstripping that rate, and more.