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VMware (VMware) Cyclically Adjusted PS Ratio : 5.39 (As of Jun. 08, 2024)


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What is VMware Cyclically Adjusted PS Ratio?

As of today (2024-06-08), VMware's current share price is $142.48. VMware's Cyclically Adjusted Revenue per Share for the quarter that ended in Jul. 2023 was $26.43. VMware's Cyclically Adjusted PS Ratio for today is 5.39.

The historical rank and industry rank for VMware's Cyclically Adjusted PS Ratio or its related term are showing as below:

VMW' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 4.18   Med: 8.21   Max: 14.31
Current: 5.39

During the past years, VMware's highest Cyclically Adjusted PS Ratio was 14.31. The lowest was 4.18. And the median was 8.21.

VMW's Cyclically Adjusted PS Ratio is not ranked
in the Software industry.
Industry Median: 1.82 vs VMW: 5.39

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

VMware's adjusted revenue per share data for the three months ended in Jul. 2023 was $7.851. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $26.43 for the trailing ten years ended in Jul. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


VMware Cyclically Adjusted PS Ratio Historical Data

The historical data trend for VMware's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

VMware Cyclically Adjusted PS Ratio Chart

VMware Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.82 9.11 7.46 5.87 4.88

VMware Quarterly Data
Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.85 4.59 4.88 4.84 5.96

Competitive Comparison of VMware's Cyclically Adjusted PS Ratio

For the Software - Infrastructure subindustry, VMware's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


VMware's Cyclically Adjusted PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, VMware's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where VMware's Cyclically Adjusted PS Ratio falls into.



VMware Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

VMware's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=142.48/26.43
=5.39

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

VMware's Cyclically Adjusted Revenue per Share for the quarter that ended in Jul. 2023 is calculated as:

For example, VMware's adjusted Revenue per Share data for the three months ended in Jul. 2023 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Jul. 2023 (Change)*Current CPI (Jul. 2023)
=7.851/128.9743*128.9743
=7.851

Current CPI (Jul. 2023) = 128.9743.

VMware Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201309 2.976 98.790 3.885
201312 3.410 98.326 4.473
201403 3.128 99.695 4.047
201406 3.356 100.560 4.304
201409 3.490 100.428 4.482
201412 3.921 99.070 5.105
201503 3.510 99.621 4.544
201506 3.564 100.684 4.565
201509 3.944 100.392 5.067
201512 4.408 99.792 5.697
201603 3.746 100.470 4.809
201606 3.964 101.688 5.028
201609 4.183 101.861 5.296
201612 4.811 101.863 6.091
201704 4.193 103.167 5.242
201707 4.603 103.278 5.748
201710 4.784 104.070 5.929
201801 6.167 104.578 7.606
201804 4.886 105.708 5.961
201807 5.260 106.324 6.381
201810 5.308 106.695 6.416
201901 7.268 106.200 8.827
201904 5.742 107.818 6.869
201907 6.192 108.250 7.377
201910 6.278 108.577 7.457
202001 7.233 108.841 8.571
202004 6.486 108.173 7.733
202007 6.796 109.318 8.018
202010 6.764 109.861 7.941
202101 7.775 110.364 9.086
202104 7.094 112.673 8.120
202107 7.422 115.183 8.311
202110 7.559 116.696 8.354
202201 8.348 118.619 9.077
202204 7.300 121.978 7.719
202207 7.866 125.002 8.116
202210 7.532 125.734 7.726
202301 8.640 126.223 8.828
202304 7.593 127.992 7.651
202307 7.851 128.974 7.851

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


VMware  (NYSE:VMW) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


VMware Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of VMware's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


VMware (VMware) Business Description

Industry
Traded in Other Exchanges
N/A
Address
3401 Hillview Avenue, Palo Alto, CA, USA, 94304
VMware is an industry titan in virtualizing IT infrastructure and became a stand-alone entity after spinning off from Dell Technologies in November 2021. The software provider operates in three segments: licenses; subscriptions and software as a service; and services. VMware's solutions are used across IT infrastructure, application development, and cybersecurity teams, and the company takes a neutral approach to being the cohesion between cloud environments. The Palo Alto, California, firm operates and sells on a global scale, with about half its revenue from the United States, through direct sales, distributors, and partnerships.
Executives
Jean Pierre Brulard officer: EVP, Worldwide Sales 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Zane Rowe officer: Chief Financial Officer & EVP 1600 SMITH STREET, HQSEO, HOUSTON TX 77002
Sumit Dhawan officer: President 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Amy Fliegelman Olli officer: Sr. VP and General Counsel C/O VMWARE, INC., 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Pebbie L Verdecanna officer: Interim CAO 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Nicole Anasenes director 2600 ANSYS DRIVE, CANONSBURG PA 15317
Slta Spv-2 (gp), L.l.c. director, 10 percent owner C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Slta Spv-2, L.p. director, 10 percent owner C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Silver Lake Technology Investors V, L.p. director, 10 percent owner C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Slta V (gp), L.l.c. director, 10 percent owner C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Silver Lake Technology Associates V, L.p. director, 10 percent owner C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Silver Lake Partners V De (aiv), L.p. director, 10 percent owner C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Sl Spv-2, L.p. director, 10 percent owner C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Dell Inc 10 percent owner ONE DELL WAY, ROUND ROCK TX 78682
Rangarajan (raghu) Raghuram officer: EVP, Cloud Infrastructure 3401 HILLVIEW AVENUE, PALO ALTO CA 94304