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Stock: IBM
Book Value Per Share: $28.92
EPS: $10.89
Diluted EPS TTM: $5.86
Dividend Per Share: 6.68
Dividend Yield: 2.41 %
Dividend Payout Ratio: 61%
Price To Sales Ratio TTM: 3.977
Price To Book Ratio: 9.3
PEG Ratio: 2.035
EV To EBITDA: 24.27
P/E Ratio: 45.88
Forward P/E Ratio: 24.51
Ex Dividend Date: 2025-05-09
Dividend Date: 2025-06-10
Current Price: $277.22
Previous Close: $281.03
52 Week Low: $161.91
52 Week High: $270.17
Earning Date (within 30 days): N/A
50 Day MA: $248.89
200 Day MA: $233.38
Link to Yahoo (Financial): IBM
 
* Note: Prices are in Million (M) USD.
Description:
International Business Machines (IBM) ▼
International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $13,947 M
Debt : $49,884 M
EBITDA : $13,950 M
Net Debt (Debt - Cash): $35,937 M

Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Information Technology Services

Based on sector, 5 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 25.46

Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $12,588 M
Average Revenue: $83,789 M
Free Cash Flow to Revenue : 15 %

Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $62,753 M
Revenue 4 Years Ago (2020-12-31): $73,621 M
Last 5 Years Average Revenue Growth: -3%

Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $937 M
Share Count 5 Years Ago (2020-12-31): $897 M

Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $10.89
Dividend Per Share (DPS): $7
Payout Ratio: 61%
Dividend Yield: 3%

Since company Payout Ratio is greater than 50, 1 point assigned.

Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 53%

Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $277
52-Week Low: $162
Threshold Price (15% Above 52-Week Low): $186

Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $249,887 M

Since Market Cap is between 100B - 500B, 3 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 22 points to above International Business Machines (IBM) stock.
Twenty Years Avg PE 13, Fair Value PE 25 and Industry Based PE is 25. Based on these three values average assigned is 21.00.
Value-Trades has assined P/E value 21.00. Since current year earning per share is $10.89.
The fair value of International Business Machines (IBM) stock should be (21.00 x $10.89) = $228.69

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