| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 31.60 | -77 |
VMware, Inc. is a global leader in multi-cloud and virtualization software solutions, providing cutting-edge technology for modern applications, cloud management, networking, security, and digital workspaces. Headquartered in Palo Alto, California, VMware serves enterprises worldwide with its robust portfolio, including VMware vSphere for data center infrastructure, vSAN and VxRail for storage solutions, and NSX for advanced networking and security. The company’s VMware Cloud Foundation integrates these technologies into a seamless hybrid and multi-cloud platform, enabling businesses to optimize their IT environments. VMware also offers Tanzu for application modernization and Workspace ONE for unified endpoint management, positioning itself as a critical enabler of digital transformation. With strategic alliances like Amazon Web Services (AWS), VMware continues to expand its hybrid cloud capabilities. As a key player in the Software - Infrastructure sector, VMware is essential for enterprises navigating cloud complexity, security challenges, and remote workforce demands.
VMware presents a compelling investment case due to its strong market position in cloud infrastructure and virtualization, with consistent revenue growth and solid cash flow generation. The company’s multi-cloud strategy, strategic partnerships (notably with AWS), and recurring revenue model enhance its stability. However, risks include high debt levels (~$11.3B) and competitive pressures from hyperscalers and open-source alternatives. The lack of dividends may deter income-focused investors, but VMware’s innovation in hybrid cloud and security solutions supports long-term growth potential. Investors should monitor its integration with Broadcom (pending acquisition) for potential synergies or disruptions.
VMware dominates the virtualization and hybrid cloud market, leveraging its first-mover advantage with vSphere and vSAN. Its competitive edge lies in deep enterprise integration, a comprehensive multi-cloud stack (VMware Cloud Foundation), and strong partnerships (AWS, Azure, Google Cloud). However, the rise of native cloud services (e.g., AWS Outposts, Azure Arc) poses a threat, as hyperscalers increasingly offer competing virtualization tools. VMware counters this with Tanzu’s Kubernetes-native approach and NSX’s networking differentiation. Security solutions like Carbon Black and Workspace ONE further differentiate VMware in endpoint and workload protection. Financially, VMware’s ~$13.4B revenue and $4.3B operating cash flow reflect robust demand, but competitors with larger R&D budgets (Microsoft, Oracle) could erode its edge. The Broadcom acquisition may streamline operations but risks cultural integration challenges.