VMware Inc
XETRA:BZF1
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EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (20.5), the stock would be worth €124.55 (7% downside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 22.1 | €134.36 |
0%
|
| 3-Year Average | 20.5 | €124.55 |
-7%
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| 5-Year Average | 20.3 | €123.69 |
-8%
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| Industry Average | 19.4 | €117.87 |
-12%
|
| Country Average | 14.4 | €87.4 |
-35%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
|
€60.2B
|
/ |
Aug 2023
$3.2B
|
= |
|
|
€60.2B
|
/ |
Mar 2024
$5B
|
= |
|
|
€60.2B
|
/ |
Mar 2025
$5.5B
|
= |
|
Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| US |
V
|
VMware Inc
XETRA:BZF1
|
58B EUR | 22.1 | 47.9 | |
| US |
|
Microsoft Corp
NASDAQ:MSFT
|
3.2T USD | 17.5 | 26.5 | |
| US |
|
Oracle Corp
NYSE:ORCL
|
498.2B USD | 20.5 | 30.8 | |
| US |
|
Palo Alto Networks Inc
NASDAQ:PANW
|
145.7B USD | 80.3 | 97.9 | |
| US |
|
CrowdStrike Holdings Inc
NASDAQ:CRWD
|
113.5B USD | 3 311.1 | -698.7 | |
| US |
|
ServiceNow Inc
NYSE:NOW
|
93.4B USD | 33.1 | 53.2 | |
| US |
|
Fortinet Inc
NASDAQ:FTNT
|
62.7B USD | 26.8 | 33.8 | |
| CN |
K
|
Knowledge Atlas Technology JSC Ltd
HKEX:2513
|
452.6B HKD | -111.5 | -83.9 | |
| US |
|
Xperi Holding Corp
LSE:0M2A
|
54.6B USD | 212.5 | 491.7 | |
| CN |
|
MiniMax Group Inc
HKEX:100
|
262.2B HKD | -19.4 | -17.9 | |
| US |
|
Zscaler Inc
NASDAQ:ZS
|
21.8B USD | 1 032.6 | -321.7 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10 |
| Median | 14.4 |
| 70th Percentile | 21.5 |
| Max | 1 767 274.1 |
Other Multiples
VMware Inc
Glance View
VMware Inc. began its journey as a pioneer in virtualization technology, dramatically transforming how IT infrastructure is managed across the globe. The company started with a core innovation in virtualization that allowed one computer to run multiple operating systems simultaneously. This breakthrough laid the groundwork for a revolution in data center efficiencies and sparked the widespread evolution of cloud computing. VMware’s virtualization technology essentially creates a layer of abstraction between computing hardware and the software running on it, enabling organizations to maximize their hardware investments through powerful capabilities like workload consolidation and seamless resource allocation. The firm’s early and steadfast dedication to solving enterprise IT problems positioned it as a critical player in helping companies modernize their technological frameworks. Today, VMware reaps significant financial gain through its diversified portfolio, which includes software and services crafted to help enterprises optimize their IT environments. Its flagship product suite, VMware vSphere, remains at the heart of its revenue model, providing commercial licensing for advanced virtualization platforms. Beyond vSphere, VMware has expanded its offerings to encompass a broad array of cloud services, storage solutions, and network security products. Innovations such as VMware Cloud, NSX, and Tanzu demonstrate its transition towards a hybrid cloud strategy and containerized application management, ensuring relevance in an era increasingly steered by cloud-native philosophies. Through subscriptions, licensing, and professional services, VMware capitalizes on enabling businesses to create flexible, efficient, and secure infrastructures, navigating the increasingly complex landscape of digital transformation.