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Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (5085)	11/16/2000 8:51:19 PM
From: Boplicity	Read Replies (1) \| Respond to of 10934

I don't even like bridge. It's good I don't resemble him, he is one ugly looking human. <gg> Greg

To: Uncle Frank who wrote (5085)	11/17/2000 12:46:59 AM
From: tinkershaw	Read Replies (2) \| Respond to of 10934

What do you feel NTAP should be valued at? I did a discounted cash flow evaluation using CAPM and deriving a WACC of 16% with a ROIC of 40%, terminal growth of 10% and derived a fair market value of NTAP for an acquirer to be in the range of $45.28 billion. This I would consider to be a moderate, middle of the range offer for NTAP. This is how an investment bank would value NTAP for a possible acquisition. Or what is also called "intrinsic value." My model does have 10 year compounded revenue growth of 52%. This may seem aggressive to some, but I point out the examples of Cisco and EMC in how this sort of sustainable long-term revenue growth can exist. Cisco is actually accelerating again and it will do over $12 billion in revs. NTAP has not even hit $1 billion yet. Since 1994 EMC has done a CAGR of 43% or so. NTAP is growing faster than EMC, and hopefully can come close to Ciscoian type numbers. Tinker