How to buy VMware stock - 06 March

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How to buy VMware stock

Own VMware stock in just a few minutes.

Fact checked

VMware, Inc is a software-infrastructure business based in the US. VMware shares (VMW) are listed on the NYSE and all prices are listed in US Dollars.

How to buy shares in VMware

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for VMware. Find the stock by name or ticker symbol: VMW. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until VMware reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of VMware, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of VMware. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

VMware share price

Use our graph to track the performance of VMW stocks over time.

VMware shares at a glance

Information last updated 2021-03-03.
52-week rangeUSD$86 - USD$161.95
50-day moving average USD$140.95
200-day moving average USD$142.139
Wall St. target priceUSD$169.13
PE ratio 28.6502
Dividend yield N/A (17.59%)
Earnings per share (TTM) USD$4.86

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy VMware stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Is VMware under- or over-valued?

Valuing VMware stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of VMware's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

VMware's P/E ratio

VMware's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 29x. In other words, VMware shares trade at around 29x recent earnings.

That's comparable to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29).

VMware's PEG ratio

VMware's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.077. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into VMware's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

VMware's EBITDA

VMware's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$3.4 billion.

The EBITDA is a measure of a VMware's overall financial performance and is widely used to measure a its profitability.

VMware financials

Revenue TTM USD$11.8 billion
Operating margin TTM 19.78%
Gross profit TTM USD$9.7 billion
Return on assets TTM 5.26%
Return on equity TTM 25.63%
Profit margin 17.49%
Book value $21.586
Market capitalisation USD$58.4 billion

TTM: trailing 12 months

Shorting VMware shares

There are currently 9.8 million VMware shares held short by investors – that's known as VMware's "short interest". This figure is 6.6% up from 9.2 million last month.

There are a few different ways that this level of interest in shorting VMware shares can be evaluated.

VMware's "short interest ratio" (SIR)

VMware's "short interest ratio" (SIR) is the quantity of VMware shares currently shorted divided by the average quantity of VMware shares traded daily (recently around 2.0 million). VMware's SIR currently stands at 4.91. In other words for every 100,000 VMware shares traded daily on the market, roughly 4910 shares are currently held short.

However VMware's short interest can also be evaluated against the total number of VMware shares, or, against the total number of tradable VMware shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case VMware's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 VMware shares in existence, roughly 20 shares are currently held short) or 0.1482% of the tradable shares (for every 100,000 tradable VMware shares, roughly 148 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against VMware.

Find out more about how you can short VMware stock.

VMware's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like VMware.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

VMware's total ESG risk score

Total ESG risk: 20.86

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and VMware's overall score of 20.86 (as at 01/01/2019) is excellent – landing it in it in the 16th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like VMware is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

VMware's environmental score

Environmental score: 5.78/100

VMware's environmental score of 5.78 puts it squarely in the 9th percentile of companies rated in the same sector. This could suggest that VMware is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

VMware's social score

Social score: 15.73/100

VMware's social score of 15.73 puts it squarely in the 9th percentile of companies rated in the same sector. This could suggest that VMware is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

VMware's governance score

Governance score: 11.86/100

VMware's governance score puts it squarely in the 9th percentile of companies rated in the same sector. That could suggest that VMware is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

VMware's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. VMware scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that VMware has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

VMware, Inc was last rated for ESG on: 2019-01-01.

Total ESG score 20.86
Total ESG percentile 15.52
Environmental score 5.78
Environmental score percentile 9
Social score 15.73
Social score percentile 9
Governance score 11.86
Governance score percentile 9
Level of controversy 2

VMware share dividends

We're not expecting VMware to pay a dividend over the next 12 months.

VMware share price volatility

Over the last 12 months, VMware's shares have ranged in value from as little as $86 up to $161.95. A popular way to gauge a stock's volatility is its "beta".

VMW.US volatility(beta: 0.95)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while VMware's is 0.945. This would suggest that VMware's shares are less volatile than average (for this exchange).

VMware overview

VMware, Inc. provides software in the areas of hybrid cloud, multi-cloud, modern applications, networking and security, and digital workspaces in the United States and internationally. It offers compute products, including VMware vSphere, a data center platform, which enables users to deploy hypervisor, a layer of software that resides between the operating system and system hardware to enable compute virtualization; and cloud management products for businesses with automated operation, programmable provisioning, and application monitoring solutions. It also provides networking and security products and services that enable customers to connect and operate their network; and storage and availability products, including data storage and protection options. In addition, it offers VMware Cloud Foundation, a platform that combines its compute, storage, and networking technologies with cloud management into an integrated stack and delivers enterprise-ready cloud infrastructure for private and public clouds. Further, it provides hybrid cloud computing solutions, such as VMware Cloud Provider Program, VMware Cloud Foundation, and VMware Cloud Services; computing solutions, such as Workspace ONE that delivers and manages any application on any device by integrating access control, application management, and multi-platform endpoint management; pivotal cloud foundry, pivotal labs, and heptio, as well as pivotal application and pivotal container services; and VMware Carbon Black Cloud platform, AppDefense, and VMware Workspace ONE platform. The company sells its products through distributors, resellers, system vendors, and systems integrators. VMware, Inc. has strategic alliances with Amazon Web Services to build and deliver an integrated hybrid solution; and SNC-Lavalin to provide digital collaboration platform for project delivery. The company was incorporated in 1998 and is headquartered in Palo Alto, California. VMware, Inc. is a subsidiary of Dell Technologies Inc.

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