EMC CORPORATIONEMC CORPORATION

An Overview of Financial An Overview of Financial PerformancePerformance

November 20, 2007November 20, 2007Analysis by Stephanie Snyder and Analysis by Stephanie Snyder and

Corrie Livesay Corrie Livesay

Key StatisticsKey Statistics

EMCEMC As of 11/20/07As of 11/20/07

Purchase PricePurchase Price $12.98$12.98

Current PriceCurrent Price $19.16$19.16

52 Week High52 Week High $25.47$25.47

52 Week Low52 Week Low $12.57$12.57

BetaBeta 1.891.89

Current P/ECurrent P/E 27.5027.50

Forward P/EForward P/E 26.9026.90

5 Year Est. Growth Rate5 Year Est. Growth Rate 14.19%14.19%

Earnings/ShareEarnings/Share .71.71

SOURCE: moneycentral.com

Recent NewsRecent NewsEMC innovation strategy goes beyond storage The company wants to beknown as an information infrastructure vendor now.Kathleen Lau (ComputerWorldCanada) 19 November 2007

► Lewis, along with other EMC executives discussed the company's plan to continue innovating through research and development, acquisitions, integration, and partners at an EMC Innovation Day Wednesday.

► This year, EMC spent 12 percent of its revenue on R&D, and an average of US$2 billion a year acquiring 30 technology companies over the last four years, with the goal of providing customers "best of breed innovative products and solutions for their information infrastructure needs," according to EMC's chairman and CEO, Joe Tucci.

EMC CEO Has 'No Intention“ Of Selling VMware StakeBy WILLIAM M. BULKELEYNovember 14, 2007 2:50 p.m.

► EMC Corp. chairman and Chief Executive Joseph Tucci said in a speech in Boston to technology analysts that he has "no intention of selling more of VMware," which is 86% owned by EMC.

► EMC sold a minority stake in VMware Inc. to the public in August in the hottest initial public offering of the year at $29 a share.

5 year stock performance5 year stock performance

SOURCE: moneycentral.com

Analysts’ TargetsAnalysts’ Targets

SOURCE: smartmoney.com

Growth RateGrowth Rate

►No dividends.No dividends.►Find growth rate for sales over past 4 Find growth rate for sales over past 4

years.years.►(11,155,090/5,438,352)^(1/4)-1= (11,155,090/5,438,352)^(1/4)-1=

19.67%19.67%

►Analysts recommended a 16.3% 5-year Analysts recommended a 16.3% 5-year growth rate so we took the average to growth rate so we took the average to find a growth rate of 18%.find a growth rate of 18%.

3-stage Growth Model3-stage Growth Model

Technical AnalysisTechnical AnalysisBollinger Bands and RSIBollinger Bands and RSI

Technical AnalysisTechnical AnalysisMoving AveragesMoving Averages

Relative ValuationP/E EPS 2007 2008

Current P/E 27.6 Low Estimate .67 .74

Forward P/E 27.4 Avg. Estimate .72 .85

Industry P/E 22.8 High Estimate .78 .95

2007 EPS(.67)

2007 EPS(.72)

2007 EPS(.78)

2008 EPS(.74)

2008 EPS(.85)

2008 EPS(.95)

P/E 22.8 $15.28 $16.42 $17.78 $16.87 $19.38 $21.66

P/E 27.4 $18.36 $19.73 $21.37 $20.28 $23.29 $26.03

P/E 27.6 $18.49 $19.87 $21.53 $20.42 $23.46 $26.22

Scenario Est. Return 2007

Worst -22.20%

Expected .46%

High 9.62%

Scenario Est. Return 2008

Worst -14.10%

Expected 18.58%

High 33.50%SOURCE: moneycentral.com

RecommendationRecommendation

►This is a stock that you want to hold This is a stock that you want to hold for the long-term.for the long-term.

►The stock has done fairly well. No The stock has done fairly well. No negative news at this point.negative news at this point.

►The intrinsic value suggests we have The intrinsic value suggests we have exceeded our best estimate, but on exceeded our best estimate, but on the other hand, the relative value the other hand, the relative value and the analysts’ opinions suggest and the analysts’ opinions suggest there is more money to be made. there is more money to be made. Therefore, we should continue to Therefore, we should continue to hold this stock. hold this stock.