The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-04-25), VMware's share price is $142.48. VMware's Book Value per Share for the quarter that ended in Jul. 2023 was $5.90. Hence, VMware's PB Ratio of today is 24.13.
The historical rank and industry rank for VMware's PB Ratio or its related term are showing as below:
VMW'
s PB Ratio Range Over the Past 10 Years
Min: 2.37 Med: 5.96 Max: 368.46
Current: 24.13
During the past 13 years, VMware's highest PB Ratio was 368.46. The lowest was 2.37. And the median was 5.96.
VMW's PB Ratio is not ranked
in the Software industry.
Industry Median: 2.615
vs VMW: 24.13
During the past 12 months, VMware's average Book Value Per Share Growth Rate was 1683.70% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was -40.20% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of VMware was 57.20% per year. The lowest was -40.20% per year. And the median was 11.90% per year.
Back to Basics: PB Ratio
VMware PB Ratio Historical Data
The historical data trend for VMware's PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, VMware's PB Ratio, along with its competitors' market caps and PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
VMware's PB Ratio Distribution in the Software Industry
For the Software industry and Technology sector, VMware's PB Ratio distribution charts can be found below:
* The bar in red indicates where VMware's PB Ratio falls into.
VMware PB Ratio Calculation
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
VMware's PB Ratio for today is calculated as follows:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
VMware PB Ratio Related Terms
Thank you for viewing the detailed overview of VMware's PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
VMware is an industry titan in virtualizing IT infrastructure and became a stand-alone entity after spinning off from Dell Technologies in November 2021. The software provider operates in three segments: licenses; subscriptions and software as a service; and services. VMware's solutions are used across IT infrastructure, application development, and cybersecurity teams, and the company takes a neutral approach to being the cohesion between cloud environments. The Palo Alto, California, firm operates and sells on a global scale, with about half its revenue from the United States, through direct sales, distributors, and partnerships.
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