Is VMware, Inc. overvalued or undervalued?

Jun 25 2025 08:45 AM IST
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As of October 1, 2023, VMware, Inc. is considered attractive and undervalued with a P/E ratio of 20.5, a P/B ratio of 4.2, and an ROE of 15.8%, trading at a discount compared to Microsoft and more favorably than Oracle.
As of 1 October 2023, VMware, Inc. has moved from fair to attractive. The company is currently undervalued based on its financial metrics. Key ratios include a Price-to-Earnings (P/E) ratio of 20.5, a Price-to-Book (P/B) ratio of 4.2, and a Return on Equity (ROE) of 15.8%.

In comparison to its peers, Microsoft has a P/E ratio of 28.3, while Oracle stands at 17.9. This suggests that VMware is trading at a discount relative to Microsoft and is more attractive than Oracle in terms of valuation. Additionally, VMware's stock performance has outpaced the Sensex recently, reinforcing the notion that it is undervalued in the current market.
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