Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-04-26), VMware's Intrinsic Value: Projected FCF is $96.59. The stock price of VMware is $142.48. Therefore, VMware's Price-to-Intrinsic-Value-Projected-FCF of today is 1.5.
The historical rank and industry rank for VMware's Intrinsic Value: Projected FCF or its related term are showing as below:
VMW'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.72 Med: 1.37 Max: 2.75
Current: 1.48
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of VMware was 2.75. The lowest was 0.72. And the median was 1.37.
VMW's Price-to-Projected-FCF is not ranked
in the Software industry.
Industry Median: 1.59
vs VMW: 1.48
VMware Intrinsic Value: Projected FCF Historical Data
The historical data trend for VMware's Intrinsic Value: Projected 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.
Competitive Comparison of VMware's Intrinsic Value: Projected FCF
For the Software - Infrastructure subindustry, VMware's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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 Price-to-Projected-FCF Distribution in the Software Industry
For the Software industry and Technology sector, VMware's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where VMware's Price-to-Projected-FCF falls into.
VMware Intrinsic Value: Projected FCF Calculation
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* 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.
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
VMware's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
142.48
/
96.589835701589
=
1.48
* 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 Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of VMware's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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