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VMware (VMware) Cyclically Adjusted Price-to-FCF : 16.90 (As of May. 05, 2024)


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What is VMware Cyclically Adjusted Price-to-FCF?

As of today (2024-05-05), VMware's current share price is $142.48. VMware's Cyclically Adjusted FCF per Share for the quarter that ended in Jul. 2023 was $8.43. VMware's Cyclically Adjusted Price-to-FCF for today is 16.90.

The historical rank and industry rank for VMware's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

VMW' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 12.76   Med: 24.62   Max: 42.4
Current: 16.89

During the past years, VMware's highest Cyclically Adjusted Price-to-FCF was 42.40. The lowest was 12.76. And the median was 24.62.

VMW's Cyclically Adjusted Price-to-FCF is not ranked
in the Software industry.
Industry Median: 28.43 vs VMW: 16.89

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 Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

VMware's adjusted free cash flow per share data for the three months ended in Jul. 2023 was $0.806. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $8.43 for the trailing ten years ended in Jul. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


VMware Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for VMware's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Chart

VMware Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.09 27.27 22.05 17.75 15.10

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 Price-to-FCF 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 15.20 14.33 15.10 14.84 18.69

Competitive Comparison of VMware's Cyclically Adjusted Price-to-FCF

For the Software - Infrastructure subindustry, VMware's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, VMware's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where VMware's Cyclically Adjusted Price-to-FCF falls into.



VMware Cyclically Adjusted Price-to-FCF Calculation

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

VMware's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=142.48/8.43
=16.90

* 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 FCF per Share for the quarter that ended in Jul. 2023 is calculated as:

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

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Jul. 2023 (Change)*Current CPI (Jul. 2023)
=0.806/128.9743*128.9743
=0.806

Current CPI (Jul. 2023) = 128.9743.

VMware Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201309 1.254 98.790 1.637
201312 1.354 98.326 1.776
201403 1.548 99.695 2.003
201406 0.767 100.560 0.984
201409 1.166 100.428 1.497
201412 0.730 99.070 0.950
201503 1.340 99.621 1.735
201506 0.558 100.684 0.715
201509 0.759 100.392 0.975
201512 1.012 99.792 1.308
201603 1.601 100.470 2.055
201606 1.262 101.688 1.601
201609 1.388 101.861 1.757
201612 0.999 101.863 1.265
201704 1.754 103.167 2.193
201707 1.366 103.278 1.706
201710 2.203 104.070 2.730
201801 1.415 104.578 1.745
201804 2.516 105.708 3.070
201807 1.759 106.324 2.134
201810 1.718 106.695 2.077
201901 2.093 106.200 2.542
201904 3.098 107.818 3.706
201907 1.294 108.250 1.542
201910 1.655 108.577 1.966
202001 2.403 108.841 2.848
202004 3.053 108.173 3.640
202007 1.522 109.318 1.796
202010 2.142 109.861 2.515
202101 2.931 110.364 3.425
202104 2.834 112.673 3.244
202107 1.838 115.183 2.058
202110 2.333 116.696 2.578
202201 2.397 118.619 2.606
202204 2.125 121.978 2.247
202207 0.670 125.002 0.691
202210 2.714 125.734 2.784
202301 3.512 126.223 3.589
202304 3.812 127.992 3.841
202307 0.806 128.974 0.806

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF 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 Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow 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 Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


VMware Cyclically Adjusted Price-to-FCF Related Terms

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


VMware (VMware) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » VMware Inc (NYSE:VMW) » Definitions » Cyclically Adjusted Price-to-FCF
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