International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (22 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $261.24 Implied EV: $303.56B |
What growth rate is the market pricing in at $249?
The market implies +8.4% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +9.2%, reflecting heavy growth investment expected to generate future returns.
Wide moat driven primarily by revenue predictability. ROIC Consistency is the area most vulnerable to competitive pressure.
"Market is pessimistic — investigate whether fears are temporary or structural"
Near fair value but market is fearful — conditions may present an opportunity if fear is temporary
