VMware, Inc.

NYSE:VMW Stock Report

Market Cap: US$61.5b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

VMware Valuation

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

Below Fair Value: VMW ($142.48) is trading below our estimate of fair value ($228.12)

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

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 Average69.8x
FTNT Fortinet
47.3x11.3%US$72.4b
PANW Palo Alto Networks
43.7x-3.7%US$119.4b
CHKP Check Point Software Technologies
24.5x5.2%US$20.5b
NOW ServiceNow
163.7x20.0%US$218.7b
VMW VMware
43.1x14.2%US$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 US Software Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
YXT YXT.COM Group Holding
2.2xn/aUS$141.78m
NISN Nisun International Enterprise Development Group
1.8xn/aUS$30.51m
NXTT Next Technology Holding
0.7xn/aUS$17.02m
ULY Urgent.ly
0.07x-13.0%US$6.88m
VMW 43.1xIndustry Avg. 40.1xNo. of Companies10PE020406080100+
10 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 US Software industry average (42.5x).

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 Ratio41.9x

Price-To-Earnings vs Fair Ratio: VMW is expensive based on its Price-To-Earnings Ratio (43.1x) compared to the estimated Fair Price-To-Earnings Ratio (41.9x).

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
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Dec ’25n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Nov ’25n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Oct ’25n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Sep ’25n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Aug ’25n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Jul ’25n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Jun ’25n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
May ’25n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Apr ’25n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Mar ’25n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Feb ’25n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Jan ’25n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Dec ’24n/a
US$158.83
0%
10.4%US$182.00US$139.50n/a10
Nov ’24US$146.14
US$158.83
+8.7%
10.4%US$182.00US$139.50n/a10
Oct ’24US$166.48
US$158.83
-4.6%
10.4%US$182.00US$139.50n/a10
Sep ’24US$164.10
US$155.08
-5.5%
10.0%US$182.00US$139.50n/a10
Aug ’24US$158.96
US$143.33
-9.8%
5.6%US$161.00US$134.00n/a10
Jul ’24US$143.69
US$140.14
-2.5%
6.4%US$161.00US$124.72n/a9
Jun ’24US$133.94
US$136.97
+2.3%
6.1%US$151.00US$124.72n/a8
May ’24US$126.98
US$139.82
+10.1%
7.6%US$161.00US$125.00n/a9
Apr ’24US$124.85
US$143.19
+14.7%
5.3%US$161.00US$135.00n/a8
Mar ’24US$110.09
US$140.94
+28.0%
3.3%US$147.00US$135.00n/a8
Feb ’24US$123.34
US$139.33
+13.0%
3.5%US$147.00US$131.00n/a9
Jan ’24US$122.76
US$139.33
+13.5%
3.5%US$147.00US$131.00n/a9

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/11/23 08:18
End of Day Share Price 2023/11/21 00:00
Earnings2023/08/04
Annual Earnings2023/02/03

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

VMware, Inc. is covered by 66 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Adam ShepherdArete Research Services LLP
Christopher HickeyAtlantic Equities LLP
Jayson NolandBaird