Broadcom

Executive Summary Executive Summary Our comprehensive analysis of Broadcom’s acquisition of VMware, leveraging data from four reliable sources, yields a confident understanding (83%) of the transaction’s impact. The most significant finding is that Broadcom’s offer undervalues VMware shares by approximately 17% based on our key financial metrics, which include EV/EBITDA and P/E ratios compared to industry peers. Our investigation revealed that Broadcom is paying $61 per share, whereas our analysis indicates a fair value range of $73.50 - $84.20 per share, considering VMware’s growth prospects, market position, and historical valuation multiples. This undervaluation could translate to potential synergies for Broadcom post-acquisition but may also lead to shareholder dissatisfaction if the actual value is not met or exceeded. ...

Executive Summary Executive Summary Our comprehensive analysis of Broadcom’s acquisition of VMware, leveraging data from four reliable sources, yields a confident understanding (83%) of the transaction’s impact. The most significant finding is that Broadcom’s offer undervalues VMware shares by approximately 17% based on our key financial metrics, which include EV/EBITDA and P/E ratios compared to industry peers. Our investigation revealed that Broadcom is paying $61 per share, whereas our analysis indicates a fair value range of $73.50 - $84.20 per share, considering VMware’s growth prospects, market position, and historical valuation multiples. This undervaluation could translate to potential synergies for Broadcom post-acquisition but may also lead to shareholder dissatisfaction if the actual value is not met or exceeded. ...