VMware, Inc.

XTRA:BZF1 Stock Report

Market Cap: €56.6b

VMware Valuation

Is BZF1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BZF1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BZF1 (€139.8) is trading below our estimate of fair value (€244.19)

Significantly Below Fair Value: BZF1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BZF1?

Key metric: As BZF1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BZF1. This is calculated by dividing BZF1's market cap by their current earnings.
What is BZF1's PE Ratio?
PE Ratio43.1x
EarningsUS$1.43b
Market CapUS$61.52b

Price to Earnings Ratio vs Peers

How does BZF1's PE Ratio compare to its peers?

The above table shows the PE ratio for BZF1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average49.4x
SAP SAP
93.3x40.7%€256.1b
IXX init innovation in traffic systems
20x27.8%€365.4m
NEM Nemetschek
65.6x18.6%€11.2b
IVU IVU Traffic Technologies
18.8xn/a€230.2m
BZF1 VMware
43.1x14.2%€61.5b

Price-To-Earnings vs Peers: BZF1 is good value based on its Price-To-Earnings Ratio (43.1x) compared to the peer average (66.6x).

Price to Earnings Ratio vs Industry

How does BZF1's PE Ratio compare vs other companies in the European Software Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BZF1 43.1xIndustry Avg. 26.9xNo. of Companies20PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BZF1 is expensive based on its Price-To-Earnings Ratio (43.1x) compared to the European Software industry average (32.2x).

Price to Earnings Ratio vs Fair Ratio

What is BZF1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BZF1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.1x
Fair PE Ratio40x

Price-To-Earnings vs Fair Ratio: BZF1 is expensive based on its Price-To-Earnings Ratio (43.1x) compared to the estimated Fair Price-To-Earnings Ratio (40x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BZF1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
€146.01
0%
10.4%€167.31€128.24n/a10
Nov ’25n/a
€146.01
0%
10.4%€167.31€128.24n/a10
Oct ’25n/a
€146.01
0%
10.4%€167.31€128.24n/a10
Sep ’25n/a
€146.01
0%
10.4%€167.31€128.24n/a10
Aug ’25n/a
€146.01
0%
10.4%€167.31€128.24n/a10
Jul ’25n/a
€146.01
0%
10.4%€167.31€128.24n/a10
Jun ’25n/a
€146.01
0%
10.4%€167.31€128.24n/a10
May ’25n/a
€146.01
0%
10.4%€167.31€128.24n/a10
Apr ’25n/a
€146.01
0%
10.4%€167.31€128.24n/a10
Mar ’25n/a
€146.01
0%
10.4%€167.31€128.24n/a10
Feb ’25n/a
€146.01
0%
10.4%€167.31€128.24n/a10
Jan ’25n/a
€146.01
0%
10.4%€167.31€128.24n/a10
Dec ’24n/a
€146.01
0%
10.4%€167.31€128.24n/a10
Nov ’24€137.80
€149.65
+8.6%
10.4%€171.48€131.44n/a10
Oct ’24€158.20
€148.06
-6.4%
10.4%€169.66€130.04n/a10
Sep ’24€152.20
€143.96
-5.4%
10.0%€168.95€129.50n/a10
Aug ’24€144.60
€127.68
-11.7%
5.6%€143.42€119.37n/a10
Jul ’24€133.00
€127.57
-4.1%
6.4%€146.56€113.53n/a9
Jun ’24€125.60
€127.80
+1.8%
6.1%€140.90€116.38n/a8
May ’24€112.60
€126.85
+12.7%
7.6%€146.06€113.40n/a9
Apr ’24€114.60
€133.34
+16.3%
5.3%€149.92€125.71n/a8
Mar ’24€103.82
€131.89
+27.0%
3.3%€137.56€126.33n/a8
Feb ’24€112.32
€133.06
+18.5%
3.5%€140.39€125.11n/a9
Jan ’24€113.36
€133.06
+17.4%
3.5%€140.39€125.11n/a9
Dec ’23€115.62
€135.20
+16.9%
3.4%€142.27€126.78n/a10
Nov ’23€114.30
€138.71
+21.4%
4.4%€146.66€119.72€137.8016

Analyst Forecast: Target price is less than 20% higher than the current share price.

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