"What most people fail to understand about Lenovo is that the company isn't just about PCs. We can't deny the actual importance of the PC business as its main revenue driver (as it accounts for about 80% of its revenue base), but we should also acknowledge the importance that Lenovo is giving to smartphones, tablets and servers. Lenovo as a PC stock could have a fair valuation under a 15.4 times price-to-earnings ratio -for comparison, Dell has a price-to-earnings multiple of 12.8, while Morningstar places the average S&P 500 price-to-earnings multiple valuation at 17.2 times. A new Lenovo with a strong diversified business portfolio, however, is definitely too cheap at the current price-to-earnings multiple.
The company's current business strategy is twofold. On one hand, Lenovo aims to protect its PC business in consolidated markets and sell more, better PCs in emerging markets where demand can still grow more. On the other hand, Lenovo also benefits from the "shift to tablet and smartphones" global trend under its "Attack PC+" strategy."