DCF Tool

VMW

Vmware Inc. – Software Publishers
vmware is the leader in cloud infrastructure, business mobility and virtualization software. a pioneer in the use of virtualization and policy-driven automation technologies, vmware simplifies it complexity across the entire data center to the virtual workplace, empowering customers with solutions in the software-defined data center to hybrid cloud computing and the mobile workspace. with 2014 revenues of $6.04 billion, vmware has more than 500,000 customers, 75,000 partners, and 18,000+ employees in 120+ locations around the world. at the core of what we do are our employees who deeply value execution, passion, integrity, customers, and community. want to be part of a compassionate community that thrives on architecting what’s next in it? learn more at vmware.com/careers.
Analysis Results
Intrinsic Value $144.24
Latest Price $132.12
Relative Value 8% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 11.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 2.33 2.18
2024 2.59 2.27
2025 2.88 2.36
2026 3.21 2.46
2027 3.58 2.56
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 74.6 billion. This corresponds to a present value of 50.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.8 billion. Adding in the terminal value gives a total present value of 61.8 billion.

There are presently 428.0 million outstanding shares, so the intrinsic value per share is 144.24.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 10,231,000,000
Current Cash 5,100,000,000
Current Liabilities 12,391,000,000
Current Debt 1,009,000,000
Non-Cash Working Capital (NCWC) -6,251,000,000
Change in NCWC -938,000,000
EBIT 2,030,000,000
Tax Provision 478,000,000
Depreciation and Amortization 1,234,000,000
Capital Expenditure -450,000,000
Unlevered Free Cash Flow 1,334,515,625
Current Assets 7,966,000,000
Current Cash 3,633,000,000
Current Liabilities 9,651,000,000
Current Debt 5,000,000
Non-Cash Working Capital (NCWC) -5,313,000,000
Change in NCWC -824,000,000
EBIT 2,388,000,000
Tax Provision 265,000,000
Depreciation and Amortization 1,110,000,000
Capital Expenditure -386,000,000
Unlevered Free Cash Flow 1,984,489,208
Current Assets 8,612,000,000
Current Cash 4,715,000,000
Current Liabilities 8,386,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -4,489,000,000
Change in NCWC -688,000,000
EBIT 2,430,000,000
Tax Provision 324,000,000
Depreciation and Amortization 1,025,000,000
Capital Expenditure -329,000,000
Unlevered Free Cash Flow 2,107,471,032
Current Assets 6,691,000,000
Current Cash 2,915,000,000
Current Liabilities 10,324,000,000
Current Debt 2,747,000,000
Non-Cash Working Capital (NCWC) -3,801,000,000
Change in NCWC -907,000,000
EBIT 1,520,000,000
Tax Provision -4,918,000,000
Depreciation and Amortization 873,000,000
Capital Expenditure -279,000,000
Unlevered Free Cash Flow 1,207,000,000
Current Assets 5,651,000,000
Current Cash 2,849,000,000
Current Liabilities 5,696,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,894,000,000
Change in NCWC 58,000,000
EBIT 2,059,000,000
Tax Provision 461,000,000
Depreciation and Amortization 630,000,000
Capital Expenditure -245,000,000
Unlevered Free Cash Flow 2,172,759,972
Current Assets 13,734,000,000
Current Cash 11,653,000,000
Current Liabilities 5,033,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,952,000,000
Change in NCWC -748,000,000
EBIT 1,779,000,000
Tax Provision 1,231,000,000
Depreciation and Amortization 336,000,000
Capital Expenditure -263,000,000
Unlevered Free Cash Flow -111,962,798
Current Assets 10,335,000,000
Current Cash 7,985,000,000
Current Liabilities 4,554,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,204,000,000
Change in NCWC 74,000,000
EBIT 1,491,000,000
Tax Provision 287,000,000
Depreciation and Amortization 345,000,000
Capital Expenditure -153,000,000
Unlevered Free Cash Flow 1,466,492,871
Current Assets 9,360,000,000
Current Cash 7,509,000,000
Current Liabilities 4,129,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,278,000,000
Change in NCWC -337,000,000
EBIT 1,296,000,000
Tax Provision 216,000,000
Depreciation and Amortization 335,000,000
Capital Expenditure -333,000,000
Unlevered Free Cash Flow 730,220,115
Current Assets 9,130,000,000
Current Cash 7,075,000,000
Current Liabilities 3,996,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,941,000,000
Change in NCWC -154,000,000
EBIT 1,043,000,000
Tax Provision 162,000,000
Depreciation and Amortization 345,000,000
Capital Expenditure -352,000,000
Unlevered Free Cash Flow 720,772,900
Current Assets 7,681,000,000
Current Cash 6,175,000,000
Current Liabilities 3,293,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,787,000,000
Change in NCWC -315,971,000
EBIT 1,161,000,000
Tax Provision 133,000,000
Depreciation and Amortization 337,000,000
Capital Expenditure -345,000,000
Unlevered Free Cash Flow 702,405,634
Current Assets 6,120,039,000
Current Cash 4,630,834,000
Current Liabilities 2,960,234,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,471,029,000
Change in NCWC -235,089,000
EBIT 871,943,000
Tax Provision 147,412,000
Depreciation and Amortization 354,868,000
Capital Expenditure -234,458,000
Unlevered Free Cash Flow 613,346,357

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