The Discounted Cash Flow (DCF) valuation of VMware Inc (VMW) is 115.21 USD. With the latest stock price at 142.48 USD, the upside of VMware Inc based on DCF is -19.1%.

Is VMware a buy or a sell?

Based on the latest price of 142.48 USD and our DCF valuation, VMware Inc (VMW) is a sell. Selling VMware stocks now will result in a potential gain of 19.1%.

	Range	Selected
WACC / Discount Rate	6.4% - 9.8%	8.1%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	68.92 - 333.74	115.21
Upside	-51.6% - 134.2%	-19.1%

142.48 USD

Stock Price

115.21 USD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

VMware DCF Valuation: Revenue & Expenses Forecast

(USD in millions)		Projections

	02-2023	02-2024	02-2025	02-2026	02-2027	02-2028

Revenue	13,350	13,898	14,731	15,556	16,991	18,051
% Growth	4%	4%	6%	6%	9%	6%

Cost of goods sold	(2,482)	(2,455)	(2,472)	(2,480)	(2,573)	(2,597)
% of Revenue	19%	18%	17%	16%	15%	14%

Selling, G&A expenses	(4,879)	(5,079)	(5,384)	(5,685)	(6,210)	(6,597)
% of Revenue	37%	37%	37%	37%	37%	37%

Research & Development	(3,317)	(3,453)	(3,660)	(3,865)	(4,222)	(4,485)
% of Revenue	25%	25%	25%	25%	25%	25%

Net interest & other expenses	(880)	(916)	(971)	(1,025)	(1,120)	(1,190)
% of Revenue	7%	7%	7%	7%	7%	7%

Tax expense	(478)	(271)	(305)	(340)	(390)	(433)
Tax rate	27%	14%	14%	14%	14%	14%

Net profit	1,314	1,723	1,939	2,161	2,477	2,749
% Margin	10%	12%	13%	14%	15%	15%