My objective for this paper is to analyze EMC corporation, and its financial and operating data, in order to estimate the value of a share of its common stock. After completing the analysis and estimated an intrinsic value for a share, compare its current market price and estimated value. I will conclude by explaining whether the share is fairly priced or, overpriced or, under priced.
EMC Corporation and its subsidiaries design, manufacture, market and support a wide range of hardware and software products, and provide services for the storage, management, protection and sharing of electronic information involving computer systems. EMC supplies enterprise-oriented data-storage and retrieval technology. The company's products include intelligent disk arrays for the NT/UNIX and mainframe enterprise-storage sectors, software, and services. These integrated solutions enable organizations to create an enterprise information infrastructure, which EMC calls an E-Info-structure. EMC is a supplier of these solutions, which comprise information storage systems, software and services. Its products are sold to customers that use a variety of computing platforms for key applications, including electronic commerce, data warehousing and transaction processing. EMC operates in information storage products, information storage services and other business segments. Information storage products consist of information storage systems and information storage software. Other products manage remote data and share information across networks of different computers. Storage hardware accounts for about 70% of sales. EMC continues to boost its software presence and to build on its reputation for superior service, in efforts to maintain its lead in a highly competitive sector characterized by rapidly changing technology.
The two largest competitors of EMC are Sun Micro-systems and Net App. According to a recent independent survey of nearly 400 IT professionals, companies are increasingly looking to vendors that can provide complete storage solutions -- and the supplier they overwhelmingly prefer is EMC.