What Does VMware, Inc.'s (NYSE:VMW) Share Price Indicate?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="VMware, Inc. (NYSE:VMW) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$173 at one point, and dropping to the lows of US$146. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether VMware’s current trading price of US$154 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at VMware’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.” data-reactid=”18″>VMware, Inc. (NYSE:VMW) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$173 at one point, and dropping to the lows of US$146. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether VMware’s current trading price of US$154 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at VMware’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" See our latest analysis for VMware ” data-reactid=”19″>See our latest analysis for VMware

What is VMware worth?

Great news for investors – VMware is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is $195.27, but it is currently trading at US$154 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because VMware’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of VMware look like?

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Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for VMware, at least in the near future.

What this means for you:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Are you a shareholder? Although VMW is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. I recommend you think about whether you want to increase your portfolio exposure to VMW, or whether diversifying into another stock may be a better move for your total risk and return.” data-reactid=”37″>Are you a shareholder? Although VMW is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. I recommend you think about whether you want to increase your portfolio exposure to VMW, or whether diversifying into another stock may be a better move for your total risk and return.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Are you a potential investor? If you’ve been keeping an eye on VMW for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.” data-reactid=”38″>Are you a potential investor? If you’ve been keeping an eye on VMW for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on VMware. You can find everything you need to know about VMware in the latest infographic research report. If you are no longer interested in VMware, you can use our free platform to see my list of over 50 other stocks with a high growth potential.” data-reactid=”39″>Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on VMware. You can find everything you need to know about VMware in the latest infographic research report. If you are no longer interested in VMware, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If you spot an error that warrants correction, please contact the editor at [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.” data-reactid=”40″>If you spot an error that warrants correction, please contact the editor at [email protected]. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.