Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-04-23), International Business Machines's Intrinsic Value: Projected FCF is $139.95. The stock price of International Business Machines is $182.20. Therefore, International Business Machines's Price-to-Intrinsic-Value-Projected-FCF of today is 1.3.
The historical rank and industry rank for International Business Machines's Intrinsic Value: Projected FCF or its related term are showing as below:
IBM'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.71 Med: 0.9 Max: 1.32
Current: 1.3
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of International Business Machines was 1.32. The lowest was 0.71. And the median was 0.90.
IBM's Price-to-Projected-FCF is ranked better than 58.78% of 1264
companies
in the Software industry
Industry Median: 1.56
vs IBM: 1.30
International Business Machines Intrinsic Value: Projected FCF Historical Data
The historical data trend for International Business Machines's Intrinsic Value: Projected 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.
For the Information Technology Services subindustry, International Business Machines's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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 Price-to-Projected-FCF Distribution
For the Software industry and Technology sector, International Business Machines's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where International Business Machines's Price-to-Projected-FCF falls into.
International Business Machines Intrinsic Value: Projected FCF Calculation
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* 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 (NYSE:IBM) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
International Business Machines's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
182.20
/
139.94704327616
=
1.30
* 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 Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of International Business Machines's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
International Business Machines (International Business Machines) Business Description
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.
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