Peer comparison based on market capitalization
VMware’s valuation metrics
On May 22, VMware was trading at a forward EV-to-EBITDA multiple of ~13.6x. In contrast, Citrix had a forward EV-to-EBITDA multiple of ~14.2x.
On May 22, VMware was trading at a forward PE (price-to-earnings) multiple of ~20.6x. On the same date, Citrix had a forward PE multiple of ~18.3x.
In the May 29 trading session, VMware stock closed at $136.80, close to its lower Bollinger Band level of $129.00. This value indicates that the stock is oversold, and investors could take it as a “buy” signal.
Short interest ratio
On May 22, VMware’s short interest as a percentage of its shares outstanding (or short interest ratio) was ~7.8%. Generally, a stock’s short interest ratio that is greater than 40.0% implies that the investors and the traders expect the company’s stock price to decline.
In the last year, VMware’s stock price gained 42.5%, and it rose 0.1% in the last month. The company’s stock price has declined 3.3% in the last five days.