Name: EMC Corp. (NYSE:EMC) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

EMC Corp., current enterprise value calculation

Current share price (P)	$28.45
No. shares of common stock outstanding	1,956,842,060
US$ in millions
Common equity (market value)¹	55,672)
Add: Preferred stock, par value $0.01; none outstanding (per books)	—)
Add: Non-controlling interests (per books)	1,579)
Total equity	57,251)
Add: Notes converted and payable (per books)	—)
Add: Short-term debt (per books)	1,299)
Add: Current portion of convertible debt (per books)	—)
Add: Long-term debt (per books)	5,475)
Total equity and debt	64,025)
Less: Cash and cash equivalents	6,549)
Less: Short-term investments	2,726)
Enterprise value (EV)	54,750)

Based on: 10-K (reporting date: 2015-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 28.45 × 1,956,842,060

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EMC Corp., EV calculation

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Share price^1, 2	$25.93	$28.94	$25.68	$23.28	$27.52
No. shares of common stock outstanding¹	1,947,047,380	1,988,086,911	2,025,633,308	2,104,430,304	2,053,084,362
US$ in millions
Common equity (market value)³	50,487)	57,535)	52,018)	48,991)	56,501)
Add: Preferred stock, par value $0.01; none outstanding (book value)	—)	—)	—)	—)	—)
Add: Non-controlling interests (book value)	1,579)	1,629)	1,485)	1,167)	968)
Total equity	52,066)	59,164)	53,503)	50,158)	57,469)
Add: Notes converted and payable (book value)	—)	—)	1,665)	—)	1,700)
Add: Short-term debt (book value)	1,299)	—)	—)	—)	—)
Add: Current portion of convertible debt (book value)	—)	—)	—)	1,652)	1,605)
Add: Long-term debt (book value)	5,475)	5,495)	5,494)	—)	—)
Total equity and debt	58,840)	64,659)	60,662)	51,810)	60,774)
Less: Cash and cash equivalents	6,549)	6,343)	7,891)	4,754)	4,531)
Less: Short-term investments	2,726)	1,978)	2,773)	1,413)	1,787)
Enterprise value (EV)	49,565)	56,338)	49,998)	45,643)	54,456)

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of EMC Corp. Annual Report.

³ 2015 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 25.93 × 1,947,047,380

The valuation metrics from 2011 to 2015 exhibit a volatile trajectory, characterized by a significant decline in 2012, a recovery phase through 2014, and a subsequent contraction in 2015. Enterprise value closely tracks the movements of the market value of common equity, indicating that equity fluctuations served as the primary driver of total firm value changes during this period.

Enterprise Value (EV) Trends: Enterprise value decreased from 54,456 million in 2011 to a low of 45,643 million in 2012. This was followed by a steady recovery, rising to 49,998 million in 2013 and peaking at 56,338 million in 2014. By the end of 2015, the value contracted again to 49,565 million, mirroring the cyclical movement observed in the equity components.
Equity Market and Book Value Correlation: A strong positive correlation is observed between common equity market value and total equity. Both metrics reached their highest points in 2014, with market value at 57,535 million and book value at 59,164 million. The close alignment between these two figures throughout the five-year period suggests a market valuation that remained consistently near the company's book value.
Capital Structure and Valuation Gap: Total equity and debt consistently exceeded the Enterprise Value in every reporting year. In 2014, for example, the total equity and debt figure of 64,659 million was approximately 8,321 million higher than the Enterprise Value of 56,338 million. This persistent variance indicates the presence of significant cash and cash equivalents, which offset the total debt and equity to result in a lower net enterprise valuation.

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EMC Corp. (NYSE:EMC)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)