$SUPER MICRO COMPUTER INC(SMCI

$SUPER MICRO COMPUTER INC(SMCI)$ I keep forgetting to factor total equity into the PE ratio. If a company owns assets, that should matter when you value it.

SMCI's $25B valuation includes roughly $14B of existing shareholder equity, leaving only $11B of market premium over book value. At $4.40–$5.50 FY EPS, that premium is only about 3.1x to 3.8x projected earnings.

$Dell Technologies Inc.(DELL)$ , by comparison, commands a $340B valuation despite roughly negative book value, meaning essentially its entire valuation rests on expected future cash flows rather than existing value.

For $Hewlett Packard Enterprise(HPE)$ , total equity is $24B and market cap is $74B, so roughly $50B is expectation of future earnings. At a roughly similar forward EPS to SMCI, there is a massive valuation mismatch here.

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