EMC (NYSE:EMC) has been the dominant player in the storage systems market in recent years. However, a slowdown in the hardware business over the years has led VMware (NYSE:VMW) to be the most valuable segment within EMC. According to our estimates, VMware makes up about 50% of our $27 price estimate for EMC’s stock, which is roughly in line with the current market price.
Explosive growth in the virtualization and cloud computing business over the last few years and VMware’s market leadership in the growing market domains has led VMware’s market valuation to increase from about $625 million back in 2004 (when it was acquired by EMC) to about $30 billion when the Dell-EMC merger was announced late last year.
- Dell-EMC Deal Finally Closes: A Look At How The Merger Could Impact HPE & IBM
- EMC Earnings Takeaways: Flash Array, VMware, Services Continue Growth
- EMC Earnings Preview: Storage Hardware Sales To Remain Suppressed, Services To Drive Growth
- Why You Should Take A Closer Look At EMC’s EPS Growth
- How A Worldwide Decline In Storage Systems Sales Impacts EMC
- How Valuable Is EMC’s Information Storage Business?
Have more questions about EMC? See link below:
- What’s EMC’s Fundamental Value Based On Expected 2016 Results?
- What Will EMC’s Revenue And EBITDA Look Like In 5 Years?
- How Has EMC’s Revenue & EBITDA Composition Changed Over The Last Five Years?
- What’s EMC’s Revenue & Earnings Breakdown By Segment?
- What Is EMC’s Presence In The Storage Systems Market?