VMware reported first quarter results, exceeding expectations and showing more than 9% annual revenue growth. Curiously, stocks responded negatively.
The VMware business is very attractive, as the products and services involve exposure to the rapidly growing cloud and IoT industries.
The list of strategic partners includes such big names as Amazon, Microsoft, IBM, Cisco and others.
The DCF analysis shows that the stock is significantly undervalued. The fair price range is $ 96.9-106.6, which represents 10-22% upside potential.
On June 1, 2017, VMware (NYSE: VMW) reported first quarter results, surpassing both revenue per share and revenue, showing more than 9% year-on-year growth. However, the stock price responded surprisingly negatively to this news, falling from $ 98 to $ 87.6 in just 7 trading days. I think this provides a decent opportunity to invest in the company, as the fundamentals are strong and the business is promising. This article shows why VMW is a strong buy and value stock using the DCF model.
VMware Business Status
Key solutions offered by VMware include virtualization and cloud infrastructure. One of the company's major products experiencing growing adoption by many data center providers is the Software-Defined Data Center (SDDC), powered by four product categories: compute; Storage and availability; Network and security; Management and automation.
The SDDC is designed to transform and modernize the data center into an on-demand service that responds to the requirements of the applications by extracting, grouping and automating the services required of the underlying hardware. SDDC promises to drastically simplify data center operations and reduce costs.
