EMC

While EMC is included in the firms for this study, it is not included for both 2015 and 2016.  EMC was acquired as a wholly owned subsidiary of Dell Technologies in calendar year 2016 and does not appear in the 2016 firm and valuation data.

Navigate firm data through the following pages:

Analyst Listing       Primary Input Data
Derived Input Data       Valuation Model Outcomes

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

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 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
EV/EBIT Multiple \frac{EV_{Market}}{EBIT}  13.58 EV/EBIT\,=\,\frac { EV}{ EBIT}
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%   2.50%

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Valuation Model Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs and, depending on the equational form of any particular valuation model, may result in irrelevant or implausible results.  For example, in the event WACC < g, the value of this term, often found in the denominator of an equation’s continuation value term, will be expressly negative and may result in a negative overall valuation for the firm.  In the event of a WACC < g relation, the model form as applied to the subject firm offers an irrelevant outcome.

Valuation Model Type

Label

Equational form
Key Value Driver (NOPLAT) KVD (NOPLAT) { Value }_{ DCF/KVD }=\sum { \frac { NOPLAT_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { \frac { { NOPLAT }_{ 1 }\left( 1-\frac { g }{ ROIC } \right) }{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Key Value Driver (FCF) KVD (FCF)
{ Value }_{ DCF/KVD }=\sum { \frac { FCF_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { \frac { { NOPLAT }_{ 1 }\left( 1-\frac { g }{ ROIC } \right) }{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Free Cash Flow FCF { Value }_{ DCF/FCF }=\sum { \frac { FCF_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { \frac { { FCF }_{ 1 }}{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Economic Profit ECON π { Value }_{ { ECON\pi } }= I{ C }_{ 0 }+\sum { \frac { { IC }_{ t-1 }(ROI{ C }_{t}-WAC{C}_{t}) }{ { \left( 1+WACC \right) }^{ t } }+ \frac {\frac { I{C}_{0}\ x\ (ROI{C}_{1}\ -\ WAC{C}_{1}) }{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Adjusted Present Value APV { Value }_{ APV }=\sum { \frac { FCF_{ t } }{ { \left( 1+{ k }_{ u } \right) }^{ t } } +\frac { \frac { { FCF }_{ 1 }}{ { k }_{ u }-g } }{ { \left( 1+{ k }_{ u } \right) }^{ t } } } +\sum { \frac { { TS }_{ t } }{ { \left( 1+{ k }_{ tax } \right) }^{ t } } +\frac { \frac { { TS }_{ 1 }}{ { k }_{ tax }-g } }{ { \left( 1+{ k }_{ tax } \right) }^{ t } } }
 
Forward Market Multiple FMM { Value }_{ DCF/FMM}=\sum { \frac { FCF_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { { EBIT }_{ 1 }\,{x}\,{FMM}}{ { \left( 1+WACC \right) }^{ t } } }{\,\,\,; \,\,FMM\,=\,\frac{{EV}_{t=0}}{{EBIT}_{t=0}}}
 

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