VMW - Embedded Expectations Analysis - 2021 09 27
VMware, Inc. (VMW:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 33.0x Uniform P/E. Even at these levels, the market is pricing in bearish expectations for the firm, but management is confident about their SaaS offerings, VMware Cloud products, and Workspace solutions.Specifically, management generated an excitement marker when saying their SaaS offering increases upselling and cross-selling opportunities across their portfolio. In addition, they are confident VMware Cloud Foundation can modernize client businesses and VMware Cloud Universal provides more choice and flexibility for customers. Also, they are confident SASE will be a critical platform sale component of the Anywhere Workspace solution, their Carbon Black integration delivers network and endpoint security to customers, and the extension of VMware Cloud creates a multi-cloud infrastructure available across all clouds. They are also confident all major aspects of their portfolio will be available to customers as a license business model or a subscription SaaS model.
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.
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