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Is this Large Market Cap Stock target price reasonable for VMware, Inc. (NYSE:VMW)?

The company in question is, VMware, Inc. (NYSE:VMW) currently with a stock price of 73.77 (0.14% today). The market cap for VMware, Inc. is 31805.55, and is in the sector Technology, and Technical & System Software industry. The target price for VMware, Inc. is 73.04. Currently VMware, Inc. is trading with a P/E of 29.63, and a forward P/E of 16.1. Average volume for VMware, Inc. is 2630.46 and so far today it is 265837.

Performance in the last year for VMware, Inc. has been -8.55%. For EPS growth, VMware, Inc. has seen a growth of 14.80%, and is looking to grow in the next year to 6.59%. More long term stats show that EPS growth has been 22.60% over the last five years and could be 13.67% for the next five years. VMware, Inc. has seen sales growth quarter over quarter at 6.00%, with EPS growth quarter over quarter at 54.00%. The 20-day simple moving average is 6.11%, with the 200-day simple moving average coming to 26.65%.

Since the IPO date for VMware, Inc. on the 8/15/2007, VMware, Inc. has seen performance year to date to be 30.23%. With VMware, Inc. trading at 73.77, the dividend yield is *TBA, and the EPS is 2.49.

So could VMware, Inc., be undervalued? Well as said before P/E is 29.63. The PEG is 2.17, P/S is 4.66 and the P/B is at 3.63. The P/cash is 3.67, with P/free cash flow at 16.15.

VMware, Inc. ability to deal with debt shows that the current ratio is 2.5, and the quick ratio is 2.5. This is with long term debt/equity at 0.17, and total debt/equity at 0.17.

In terms of margins, VMware, Inc. has a gross margin of 84.80%, an operating margin of 18.90% and a profit margin of 15.50%.Payout ratio for VMware, Inc. is 0.00%. Return on assets come to 6.70% with return on investment coming to 10.40%.

Insider ownership for VMware, Inc., is at 0.90% and institutional ownership comes to 77.00%. Outstanding shares are at 431.73. While shares float is 78.97. The float short is currently 30.02%, and short ratio is 9.01.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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