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

Derived Input	Label	2015 Value	2016 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	WACC_Market	9.00%		$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	8.91%
Enterprise value	EV_Market	45,586		$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	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.
Long-Run Growth	g = % $\Delta$ GDP	2.50%
Margin from Operations	M	13.56%		$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	36.48%		$D\,\,=\,\,\frac{D+A}{EBITDA}$

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

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	1.84		3.30%		3.22%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	8.63		3.30%		3.22%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	20.89		3.30%		3.22%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	10.17		3.30%		3.22%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	13.58		3.30%		3.22%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	-3.61		3.30%		3.22%