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VMware Inc Class A VMW Stock Quote

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Morningstar‘s Stock Analysis VMW

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VMware Turns in Solid Second-Quarter Results; No Change to $147 FVE

Abhinav Davuluri, CFA Sector Strategist

Analyst Note

| Abhinav Davuluri, CFA |

VMware reported second-quarter results relatively consistent with our expectations. The firm did not have an earnings call or provide guidance due to the pending deal for VMware to be acquired by Broadcom for $61 billion. We are maintaining our $147 fair value estimate for narrow-moat VMware, which is probability weighted. We assign a 75% probability of the deal being completed at Broadcom's offer price of $138.23 per share, which consists of 50% received as $142.50 cash and 50% received as 0.2520 shares of Broadcom per VMware share. Our stand-alone fair value estimate remains $175 per share.

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Key Statistics VMW

Company Profile VMW

Business Description

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 the 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.

Contact
3401 Hillview Avenue
Palo Alto, CA, 94304
T +1 650 427-5000
Industry Software - Infrastructure
Most Recent Earnings Jul 31, 2022
Fiscal Year End Jan 28, 2023
Employees 37,500

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