International Business Machines (WBO:IBM) GF Value Rank : 1 (As of Dec. 11, 2024)

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What is International Business Machines GF Value Rank?

International Business Machines has the GF Value Rank of 1.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of International Business Machines's GF Value Rank

For the Information Technology Services subindustry, International Business Machines's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, International Business Machines's GF Value Rank distribution charts can be found below:

* The bar in red indicates where International Business Machines's GF Value Rank falls into.

International Business Machines GF Value Rank Related Terms

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International Business Machines Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » International Business Machines Corp (WBO:IBM) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

IBM:USA IBM:Mexico IBM_KZ:Kazakhstan 1IBM:Italy IBMd:UK IBM0:Germany IBM:Germany IBM:Germany IBM:Germany IBM:Germany IBM:Canada IBMB34:Brazil IBM:Argentina

Address

One New Orchard Road, Armonk, NY, USA, 10504

Website

http://www.ibm.com

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.