VMware Stock

VMware EV/EBIT

Delisted·Dec 15, 2023

The EV/EBIT (Enterprise Value to EBIT) of VMware (VMW) as of Jul 19, 2026 is 30.31. In the previous year, EV/EBIT (Enterprise Value to EBIT) was 25.76 — a change of 17.64% (higher).

EV/EBIT

30.31

YoY

17.64%

Last updated:

EV/EBIT (Enterprise Value to EBIT) of VMware is 2026 30.31 . EV/EBIT (Enterprise Value to EBIT) of VMware was 2025 25.76 . It decreases by 17.64% higher compared to the previous year.

The VMware EV/EBIT history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

PRICE-TO-EBIT
Date
PRICE-TO-EBIT
Jan 1, 2020
39.22 base
Jan 1, 2021
20.17 base
Jan 1, 2022
21.71 base
Jan 1, 2023
29.89 base
Jan 1, 2024 (e)
0.00 base
Jan 1, 2025 (e)
0.00 base
Jan 1, 2026 (e)
11.72 base
Jan 1, 2026 (e)
11.43 base
YEARPRICE-TO-EBIT
2026 est 11.43
2026 est 11.72
2025 est -
2024 est -
2023 29.89
2022 21.71
2021 20.17
2020 39.22
2019 35.27
2018 31.36
2017 -1,220.38
2015 18.64
2014 34.42
2013 33.63
2012 46.85
2011 48.76
2010 87.26
2009 76.71
2008 30.05
2007 129.84
2006 -
2005 -
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VMware Valuation

Details

Historical Valuation Multiples

Price-to-Earnings Ratio (P/E)

The P/E ratio divides VMware's share price by its earnings per share. It tells you how many years of current earnings you are "paying for" when you buy the stock. A P/E of 20 means you pay $20 for every $1 of annual earnings. The S&P 500 historically trades at an average P/E of roughly 15–17. A P/E significantly above that may signal high growth expectations; one below may indicate undervaluation — or declining business quality.

Price-to-Sales Ratio (P/S)

The P/S ratio divides market capitalization by total revenue. Unlike the P/E ratio, it works even for companies that are not yet profitable, making it essential for evaluating high-growth firms. A P/S below 1.0 may indicate undervaluation, while ratios above 10 are typically reserved for fast-growing tech or SaaS companies with high expected future margins.

Price-to-EBIT Ratio

This ratio relates VMware's market price to its operating earnings, excluding the effects of debt structure and tax jurisdiction. It is particularly useful for comparing companies across different countries or with different levels of leverage, because it focuses purely on operational profitability. Lower values suggest cheaper operational earnings.

How to Use This Chart

This chart plots VMware's valuation multiples over time. Compare the current P/E, P/S, and P/EBIT to their own historical averages — if the current ratio is well below the multi-year average, the stock may be relatively cheap compared to its own track record. Combine this with industry comparisons: a P/E that looks high in absolute terms may be justified if VMware grows earnings faster than its peers.

VMware Stock analysis

What does VMware do? VMware Inc is an American software company founded in 1998. It is headquartered in Palo Alto, California and has become one of the largest and most successful IT companies worldwide. VMware is primarily known for its virtualization technology and offers numerous products and services in this area. The history of VMware begins with its founding by Diane Greene, Mendel Rosenblum, and other co-founders. Originally, the company was intended to provide virtualization solutions for desktop computers. However, it quickly became clear that VMware should focus on the server market, where virtualization was seen as an efficient way to consolidate server resources and save costs. VMware's business model is based on offering companies a comprehensive virtualization solution that allows them to flexibly design and efficiently utilize their IT infrastructure. To this end, the company offers a wide range of products and services, including management tools, automation software, cloud solutions, and much more. VMware's biggest success is undoubtedly the virtualization software vSphere, which allows companies to virtualize their server infrastructure and make it more cost-effective and flexible. Today, VMware vSphere is the leading virtualization platform in the market and is used by companies of all sizes. In addition, VMware also offers a range of other virtualization products and services, including VMware Workstation and Fusion, which are virtualization solutions for desktop computers; VMware Horizon, a virtual desktop infrastructure product that allows companies to configure and operate their desktop environments in a virtual environment; and VMware NSX, a network virtualization solution that allows companies to make their networks more efficient and secure. In recent years, VMware has also increasingly focused on cloud computing solutions. Here, the company offers a wide range of services that enable companies to migrate their IT infrastructure to a cloud environment and operate it more cost-effectively and flexibly. Additionally, VMware also offers solutions for software-defined storage and integration and automation tools. All of these products and services have contributed to VMware being considered one of the fastest-growing companies in the IT industry. Another significant success of VMware is its collaboration with partners such as Dell, AWS, or Microsoft. This allows them to expand into additional customer areas and broaden their own offerings. VMware has often acted as a pioneer in many technologies of other providers. For example, the agreement with AWS led to the development of the VMware Cloud on AWS product bundle, which provides companies with an easy way to migrate their existing infrastructures to Amazon's cloud. VMware has now become a global leader in virtualization solutions, respected by large and mid-sized companies alike. VMware is known for its innovative products and solutions and will undoubtedly play an important role in the IT industry in the future. VMware is one of the most popular companies on Eulerpool.

Frequently Asked Questions about VMware stock

EV/EBIT (Enterprise Value to EBIT) of VMware is 30.31 in 2026.

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