EMC Corporation

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
Stifel Nicolaus Aaron Rakers rakersa@stifel.com
Mizuho Securities USA Abhey Lamba abhey.lamba@us.mizuho-sc.com
CRT Capital Group Alex Kurtz akurtz@sterneageecrt.com
RBC Capital Markets Amit Daryanani amit.daryanani@rbccm.com
Brean Capital, LLC Ananda Baruah abaruah@breancapital.com
Piper Jaffray Andrew J. Nowinski andrew.j.nowinski@pjc.com
Pacific Crest Securities-KBCM Brent Bracelin bbracelin@pacific-crest.com
Raymond James Brian G. Alexander brian.alexander@raymondjames.com
Drexel Hamilton Brian J. White bwhite@drexelhamilton.com
Oppenheimer Ittai Kidron ittai.kidron@opco.com
Jefferies James Kisner jkisner@jefferies.com
William Blair Jason Ader jader@williamblair.com
Longbow Research Joe Wittine jwittine@longbowresearch.com
Atlantic Equities Josep Bori j.bori@atlantic-equities.com
Wells Fargo Securities Maynard J. Um maynard.um@wellsfargo.com
Susquehanna Financial Group Mehdi Hosseini mehdi.hosseini@sig.com
Maxim Group Nehal Chokshi nehalchokshi@techinsightsresearch.com
FBN Securities Shebly Seyrafi sseyrafi@fbnsecurities.com
Deutsche Bank Research Sherri Scribner sherri.scribner@db.com
Summit Research Srini Nandury srini@summitresearchllc.com
Hilliard Lyons Stephen Turner sturner@hilliard.com
Cross Research Steven Fox steven@crossresearch.com
Bernstein Research Toni M. Sacconaghi Jr sacconaghi@bernstein.com
Daiwa Securities Co. Ltd. Yoko Yamada yoko.yamada@us.daiwacm.com

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Primary Input Data

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Derived Input Data

Derived Input


2015 Value


Equational Form

Net Operating Profit Less Adjusted Taxes NOPLAT  2,182 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 4,484 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 37 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC  (12,633) IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC -17.27% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv 763 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR 34.95% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
WACCMarket 9.00% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook    8.91%
Enterprise value
EVMarket 45,586 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook    46,154
Long-Run Growth
g = IR x ROIC
  -6.04% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP    2.50%
Margin from Operations M   13.56% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D   36.48% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value


multiple g solution

Two-stage valuation

model g solution

12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016


\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

 1.84  3.30%  3.22%


\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

8.63 3.30%  3.22%


\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

20.89 3.30% 3.22%


\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

10.17 3.30% 3.22%


\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

13.58 3.30% 3.22%


\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

-3.61 3.30% 3.22%

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