The growth of the EPS is critical in understanding the current valuation of Vmware. The EPS growth rate, as it is usually called, is typically displayed as a percentage, which is 17.71%. The long-term trend in EPS shows how well the management of Vmware is adding value for shareholders.

Vmware is part of the technology sector and is part of the application software industry. The company CEO is Patrick P. Gelsinger. VMWare Inc provides virtualization and cloud infrastructure solutions. It is engaged in the development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware.

Previous Intraday Performance:

The VMW shares had a previous change of -0.97% which opened at 149.35 and closed at 148.88. It moved to an intraday high of 151.80 and a low of 148.24.

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Historical Performance:

Over the last five trading days, VMW shares returned 7.18% and in the past 30 trading days it returned 17.75%. Over three months, it changed 25.05%. In one year it has changed 38.69% and within that year its 52-week high was 169.25 and its 52-week low was 108.46. VMW stock is 37.27% above its 52 Week Low.

Our calculations result in a 200 day moving average of 122.47 and a 50 day moving average of 129.22. Right now, VMW stock is trading 21.57% above its 200 day moving average.

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The company has a market cap of $61.0b with 409.9m shares outstanding and a float of 407.3m shares. Trading volume was 1,358,418 shares and has experienced an average volume of 1,863,927 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.


The last annual reported EPS for Vmware was 1.38 which ended on 31st of January 2018, which according to the previous close, that is a PE of 107.88. Based on 9 analyst estimates, the consensus EPS for the next quarter is 1.26. The trailing twelve month EPS is 3.94, which comes to a trailing twelve month PE of 37.79. Historically, the PE high was 107.88 and the PE low was 18.60. If the stock reached its PE low, that would represent a price of 73.28, which is a decrease of -50.78%.

Below was the last reported quarterly earnings per share:
10-31-2018:  1.21
07-31-2018:  1.18
04-30-2018:  0.87
01-31-2018:  1.36

Base on our calculations, the intrinsic value per share is 120.83, which means it might overvalued by -23.21%

Indicators Also to Watch:

Based on the latest filings, there is 0.60% of insider ownership and 25.40% of institutional ownership. Short-interest was 6,432,840, which was 1.57% of shares outstanding. The short-interest ratio or days-to-cover ratio was 3.61. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 0.70

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Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 15.44%, return on assets is 6.80%, profit margin is 17.04%, price-to-sales is 7.09 and price-to-book is 5.65.

Company Score Card:

Results are out of six:
 2  : Growth Expectations Result
 5  : Financial Safety Result
 4  : Past Performance Result
 1  : Valuation Result
 0  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).


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