What Do You Need to Know About Vmware (VMW) Before Investing?

Vmware logged a -0.1% change during today's afternoon session, and is now trading at a price of $120.67 per share. The S&P 500 index moved 0.1% and the Nasdaq posted a -0.1% change. VMW's trading volume is 681,632 compared to the stock's average volume of 987,968.

VMware, Inc. provides software solutions in the areas of modern applications, cloud management and infrastructure, networking, security, and digital workspaces in the United States and internationally. The large-cap Technology company has 37,500 full time employees and is based in Palo Alto, CA. Vmware has not offered any dividends in the last year.

Most Metrics Show Vmware Is Overvalued:

Compared to the Technology sector's average of 26.5, Vmware has a trailing twelve month price to earnings (P/E) ratio of 24.8 and, based on its Eps guidance of 7.58, an expected P/E ratio of 15.9. The firm's price to earnings growth (PEG) is 1.57, which indicates that it is overvalued in terms of its expected rate of earnings growth. . Vmware's price to book (P/B) ratio is 5.6 compared to its sector average of 5.57.

As of the date of publication, the company is trading 148.4% above their fair value as expressed by Benjamin Graham's formula. We calculate the Graham number as follows:

√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 4.86 * 21.586) = $48.58

There is Mixed market sentiment About Vmware:

19 analysts are following Vmware and have set target prices ranging from $120 to $170 per share. On average, they have given the company a rating of buy. At today's prices, VMW is trading -14.19% away from its average analyst target price of $140.62 per share, implying an analyst consensus of some upside potential for the stock. The company has a very low short interest since 1.8% of the company's shares are tied to short positions. Institutions own 47.1% of Vmware's shares, while the insider ownership rate stands at 36.78%. The biggest shareholder is Silver Lake Group, L.l.c. with a 9.94% stake in the company worth approximately $4,792,952,235.00.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.