NYSE:VMW) saw significant share price movement during recent months on the NYSE, rising to highs of US$156 and falling to the lows of US$134. 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$136 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=”28″>VMware, Inc. (NYSE:VMW) saw significant share price movement during recent months on the NYSE, rising to highs of US$156 and falling to the lows of US$134. 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$136 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.
See our latest analysis for VMware ” data-reactid=”29″>See our latest analysis for VMware
Is VMware still cheap?
Good news, investors! VMware is still a bargain right now. According to my valuation, the intrinsic value for the stock is $172.37, but it is currently trading at US$136 on the share market, meaning that there is still an opportunity to buy now. VMware’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
Can we expect growth from VMware?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of VMware, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
4 warning signs we’ve spotted with VMware (including 1 which makes us a bit uncomfortable).” data-reactid=”53″>With this in mind, we wouldn’t consider investing in a stock unless we had a thorough understanding of the risks. To that end, you should learn about the 4 warning signs we’ve spotted with VMware (including 1 which makes us a bit uncomfortable).
50 other stocks with a high growth potential.” data-reactid=”54″>If you are no longer interested in VMware, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].
