VMW’s Uniform Adjusted EPS’ is greater than reported, implying the firm is cheap, even after the material rebound in share prices

• VMW’s profitability is materially distorted by accounting for R&D and stock option expenses under GAAP

• As such, their UAFRS EPS’ is expected to grow to $4.97 this year, 60% higher than as-reported EPS of $3.10

• After making the appropriate UAFRS adjustments, VMW is trading at an 18.8x Uniform P/E, which is a material discount to 20 of the 25 US-based Systems Software companies in our database, and only a premium compared to companies with far worse growth prospects

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Submitted June 14, 2017 at 08:52PM by Valens_Research http://ift.tt/2rtcGWU