Great companies see their share price regularly hit new highs. For value investors, it doesn't matter how much the share price went up or down last year - it's whether the shares represent value now that matters. Dell are simply one of the most efficient companies on this planet. The balance sheet is extraordinarily lean. We won't go into the details here, but Dell generates oodles of cash because it keeps money sucking stocks and debtors to a minimum.
Capital expenditure is relatively low, and creditors are on the increase.
The upshot of all that activity is that Dell generates huge amounts of valuable cash, which it uses to fund research and development expenditure, future expansion, and an aggressive share buy-back scheme. 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.