Valuation metric comparisons
On September 5, VMware (VMW) was trading at a forward price-to-free-cash-flow multiple of ~16.5x. In contrast, the same multiples for Red Hat (RHT), Citrix (CTXS), and NetApp (NTAP) were ~24.0x, ~15.4x, and, ~15.0x, respectively.
In the graph above, you can see the price-to-free-cash-flow multiples for VMware, Red Hat, Citrix, and NetApp. Red Hat has the highest multiple among those companies.
On September 5, VMware was trading at a forward PE multiple of ~23.4x. That same day, Red Hat, Citrix, and NetApp had forward PE multiples of ~38.4x, ~19.3x, and ~18.1x, respectively.
In the September 5 trading session, VMware stock closed at $151.12, which was close to its lower Bollinger Band level of $149.06. That indicates that the stock is oversold, and investors might take it as a “buy” signal.
Short interest ratio
On September 5, VMware’s short interest as a percentage of its shares outstanding (or short interest ratio) was ~2.2%. Generally, a stock’s short interest ratio that’s greater than 40% implies that investors and traders expect the stock to decline.
The company has a 200-day moving average of $135.50, which is lower than its current price, thus signifying the bullish nature of the stock. In the last year, VMware stock rose 41.3%.