In this video, Fool analyst Eric Bleeker describes why he believes EMC
Looking at the more niche players in the industry, companies like Compellent
On the surface, EMC looks expensive as well, trading at 28 times its trailing earnings. However, EMC holds a valuable asset in its 80% ownership stake in virtualization expert VMware
Granted, investors could see VMware's price as overvalued as well, and divesting that stake to realize the full value of VMware doesn't seem likely, but the exercise does show that EMC is trading at a steep discount to its peers. If you're looking into storage companies, Bleeker says to check out EMC first. This deal on an industry leader might not last long.
Eric Bleeker owns shares of no companies listed above. VMware is a Motley Fool Rule Breakers pick. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.