GURUFOCUS.COM » STOCK LIST » Technology » Software » International Business Machines Corp (WBO:IBM) » Definitions » EV-to-FCF

International Business Machines (WBO:IBM) EV-to-FCF : 16.75 (As of Apr. 26, 2024)


View and export this data going back to 2017. Start your Free Trial

What is International Business Machines EV-to-FCF?

EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, International Business Machines's Enterprise Value is €188,185 Mil. International Business Machines's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 was €11,237 Mil. Therefore, International Business Machines's EV-to-FCF for today is 16.75.

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

WBO:IBM' s EV-to-FCF Range Over the Past 10 Years
Min: 10.17   Med: 14.3   Max: 25.55
Current: 17.76

During the past 13 years, the highest EV-to-FCF of International Business Machines was 25.55. The lowest was 10.17. And the median was 14.30.

WBO:IBM's EV-to-FCF is ranked better than
55.43% of 1519 companies
in the Software industry
Industry Median: 21.28 vs WBO:IBM: 17.76

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

As of today (2024-04-26), International Business Machines's stock price is €156.52. International Business Machines's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was €7.510. Therefore, International Business Machines's PE Ratio for today is 20.84.


International Business Machines EV-to-FCF Historical Data

The historical data trend for International Business Machines's EV-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 EV-to-FCF Chart

International Business Machines Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EV-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.58 10.61 16.76 20.44 16.19

International Business Machines Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
EV-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 20.44 18.21 16.12 15.26 16.19

Competitive Comparison of International Business Machines's EV-to-FCF

For the Information Technology Services subindustry, International Business Machines's EV-to-FCF, along with its competitors' market caps and EV-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 EV-to-FCF Distribution in the Software Industry

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

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



International Business Machines EV-to-FCF Calculation

International Business Machines's EV-to-FCF for today is calculated as:

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=188185.324/11237.241
=16.75

International Business Machines's current Enterprise Value is €188,185 Mil.
International Business Machines's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was €11,237 Mil.

* 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  (WBO:IBM) EV-to-FCF Explanation

EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

International Business Machines's PE Ratio for today is calculated as:

PE Ratio=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=156.52/7.510
=20.84

International Business Machines's share price for today is €156.52.
International Business Machines's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was €7.510.

* 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.

Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.


International Business Machines EV-to-FCF Related Terms

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


International Business Machines (WBO:IBM) 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.