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International Business Machines (XKAZ:IBM_KZ) Cyclically Adjusted Price-to-FCF : 12.08 (As of May. 18, 2024)


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What is International Business Machines Cyclically Adjusted Price-to-FCF?

As of today (2024-05-18), International Business Machines's current share price is $141.60. International Business Machines's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was $11.72. International Business Machines's Cyclically Adjusted Price-to-FCF for today is 12.08.

The historical rank and industry rank for International Business Machines's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

XKAZ:IBM_KZ' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 6.57   Med: 10.21   Max: 19.52
Current: 10.69

During the past years, International Business Machines's highest Cyclically Adjusted Price-to-FCF was 19.52. The lowest was 6.57. And the median was 10.21.

XKAZ:IBM_KZ's Cyclically Adjusted Price-to-FCF is ranked better than
83.21% of 679 companies
in the Software industry
Industry Median: 28.87 vs XKAZ:IBM_KZ: 10.69

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

International Business Machines's adjusted free cash flow per share data for the three months ended in Mar. 2024 was $4.066. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $11.72 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


International Business Machines Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for International Business Machines's Cyclically Adjusted Price-to-FCF 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.

* Premium members only.

International Business Machines Cyclically Adjusted Price-to-FCF Chart

International Business Machines Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.23 8.37 8.94 9.28 10.61

International Business Machines Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.49 8.59 8.94 10.61 12.08

Competitive Comparison of International Business Machines's Cyclically Adjusted Price-to-FCF

For the Information Technology Services subindustry, International Business Machines's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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.


International Business Machines's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, International Business Machines's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where International Business Machines's Cyclically Adjusted Price-to-FCF falls into.



International Business Machines Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

International Business Machines's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=141.60/11.72
=12.08

* 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.

International Business Machines's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, International Business Machines's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=4.066/131.7762*131.7762
=4.066

Current CPI (Mar. 2024) = 131.7762.

International Business Machines Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 2.548 100.560 3.339
201409 2.760 100.428 3.622
201412 5.029 99.070 6.689
201503 2.660 99.621 3.519
201506 2.880 100.684 3.769
201509 3.238 100.392 4.250
201512 4.576 99.792 6.043
201603 4.594 100.470 6.025
201606 2.537 101.688 3.288
201609 3.346 101.861 4.329
201612 3.006 101.863 3.889
201703 3.247 102.862 4.160
201706 2.810 103.349 3.583
201709 2.774 104.136 3.510
201712 4.999 104.011 6.333
201803 3.897 105.290 4.877
201806 1.320 106.317 1.636
201809 3.581 106.507 4.431
201812 3.519 105.998 4.375
201903 4.546 107.251 5.586
201906 2.480 108.070 3.024
201909 3.212 108.329 3.907
201912 3.046 108.420 3.702
202003 4.126 108.902 4.993
202006 3.177 108.767 3.849
202009 3.780 109.815 4.536
202012 5.605 109.897 6.721
202103 4.708 111.754 5.551
202106 2.058 114.631 2.366
202109 2.184 115.734 2.487
202112 2.143 117.630 2.401
202203 3.077 121.301 3.343
202206 0.889 125.017 0.937
202209 1.599 125.227 1.683
202212 3.610 125.222 3.799
202303 3.602 127.348 3.727
202306 2.324 128.729 2.379
202309 2.883 129.860 2.926
202312 4.329 129.419 4.408
202403 4.066 131.776 4.066

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


International Business Machines  (XKAZ:IBM_KZ) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


International Business Machines Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of International Business Machines's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


International Business Machines (XKAZ:IBM_KZ) Business Description

Address
One New Orchard Road, Armonk, NY, USA, 10504
IBM looks to be a part of every aspect of an enterprise's IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients—which includes 95% of all Fortune 500. While IBM is a B2B company, IBM's outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.

International Business Machines (XKAZ:IBM_KZ) Headlines

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