Exhibit 19 presents EV multiples for four companies in the data storage device industry:

Western Digital Corporation (NYSE: WDC), Net App (NASDAQ GS: NTA P), EMC Corporation (NYSE: EMC), and Seagate Technology (NASDAQ GS: STX ).

i. Exhibit 19 provides two alternative enterprise value multiples, TIC/EBITDA and EV/EBITDA. The ranking of the companies’ multiples is identical by both multiples.
In general, what could cause the rankings to vary?

ii. Each EBITDA multiple incorporates a comparison with enterprise value. How do these multiples differ from price to cash flow multiples?

iii. Based solely on the information in Exhibit 19, how does the valuation of WDC compare with that of the other three companies?

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EXHIBIT 19 Enterprise Value Multiples for Industry Peers (amounts in $ million, except where indicated otherwise) Measure WDC NTAP EMC STX Price $70.72 $39.12 $23.64 $48.04 Times: shares outstanding (millions) 237 340 2,080 357 Equals: equity market cap 16,761 13,301 49,171 17,150 Plus: Debt (most recent quarter) 1,960 995 7,190 2,780