VMW - Embedded Expectations Analysis - 2021 04 13
VMware, Inc. (VMW:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 22.3x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about their revenue growth, SaaS product offerings, and Tanzu business adoptionSpecifically, management may lack confidence in their ability to maintain the strength of their compute product performance, invest in differentiated private cloud stack infrastructure, and sustain subscription and SaaS revenue growth. Furthermore, they may have concerns about the capabilities of their SaaS offerings, Tanzu's integration with vSphere, and the pace of Tanzu adoption. Moreover, management may lack confidence in their ability to capitalize on digital transformation opportunities and strengthen their sales force. Finally, they may be overstating the potential of vRealize Automation and their Kubernetes platform
VMware is engaged in the development and application of technologies with x86 server-based computing, separating application software from the underlying hardware. The company's product and service solutions are organized into three main product groups: Software-Defined Data Center, which is designed to transform the data center into an on-demand service that addresses application requirements; Hybrid Cloud Computing, which is comprised of VMware Cloud Provider Program and VMware Cloud Services; and End-User Computing solution, which consists of VMware Workspace ONE, its digital workspace platform, that includes Unified Endpoint Management and VMware Horizon application and desktop virtualization.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.