VMware, Inc.

BMV:VMW * Stock Report

Market Cap: Mex$1.1t

VMware Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 VMW * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VMW * (MX$2587.08) is trading below our estimate of fair value (MX$3193.64)

Significantly Below Fair Value: VMW * is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

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

Price to Earnings Ratio vs Peers

How does VMW *'s PE Ratio compare to its peers?

The above table shows the PE ratio for VMW * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.6x
FTNT Fortinet
48.3x10.7%US$71.4b
PANW Palo Alto Networks
47.6x-4.1%US$126.8b
CHKP Check Point Software Technologies
23.8x5.1%US$20.1b
GEN Gen Digital
30.5x14.3%US$18.9b
VMW * VMware
43.1x14.2%Mex$61.5b

Price-To-Earnings vs Peers: VMW * is good value based on its Price-To-Earnings Ratio (43.1x) compared to the peer average (69.1x).

Price to Earnings Ratio vs Industry

How does VMW *'s PE Ratio compare vs other companies in the Global Software Industry?

34 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies84PE020406080100+
34 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VMW * is expensive based on its Price-To-Earnings Ratio (43.1x) compared to the Global Software industry average (34x).

Price to Earnings Ratio vs Fair Ratio

What is VMW *'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.

VMW * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate VMW *'s Price-To-Earnings Fair Ratio for valuation analysis.

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 VMW * forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
Nov ’25n/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
Oct ’25n/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
Sep ’25n/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
Aug ’25n/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
Jul ’25n/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
Jun ’25n/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
May ’25n/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
Apr ’25n/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
Mar ’25n/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
Feb ’25n/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
Jan ’25n/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
Dec ’24n/a
Mex$2,755.99
0%
10.4%Mex$3,158.03Mex$2,420.58n/a10
Nov ’24Mex$2,685.00
Mex$2,833.53
+5.5%
10.4%Mex$3,246.88Mex$2,488.68n/a10
Oct ’24Mex$2,933.82
Mex$2,790.63
-4.9%
10.4%Mex$3,197.72Mex$2,451.00n/a10
Sep ’24n/a
Mex$2,650.52
0%
10.0%Mex$3,110.62Mex$2,384.24n/a10
Aug ’24n/a
Mex$2,413.43
0%
5.6%Mex$2,710.97Mex$2,256.33n/a10
Jul ’24n/a
Mex$2,400.13
0%
6.4%Mex$2,757.48Mex$2,136.10n/a9
Jun ’24n/a
Mex$2,443.63
0%
6.1%Mex$2,694.04Mex$2,225.17n/a8
May ’24n/a
Mex$2,523.18
0%
7.6%Mex$2,905.34Mex$2,255.70n/a9
Apr ’24n/a
Mex$2,663.07
0%
5.3%Mex$2,994.36Mex$2,510.80n/a8
Mar ’24n/a
Mex$2,591.22
0%
3.3%Mex$2,702.68Mex$2,482.06n/a8
Feb ’24Mex$2,370.81
Mex$2,753.27
+16.1%
3.5%Mex$2,904.76Mex$2,588.60n/a9
Jan ’24Mex$2,370.81
Mex$2,753.27
+16.1%
3.5%Mex$2,904.76Mex$2,588.60n/a9
Dec ’23n/a
Mex$2,697.98
0%
3.4%Mex$2,838.97Mex$2,529.96n/a10
Nov ’23n/a
Mex$2,769.15
0%
4.4%Mex$2,927.87Mex$2,390.10Mex$2,685.0016

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

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