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IntroductionThe concept of valuationRevenue and revenue growthVariable costsFixed costsProduction assets

Intrinsic value of International Business Machines Corporation (IBM)

Previous Close$134.39
Intrinsic Value$77.00
Upside potential  -43%
Previous Close
$134.39
Intrinsic Value
$77.00*
Potential        
-43%
Use floor (the cash flow based valuation has rendered a result, which is lower than an estimated minimum value derived from the company’s balance sheet analysis)

VALUATION INPUT DATA (original, your and others' valuations)

ParameterOrig.Your
Date of valuation (DoV)  
Intrinsic value (IV) at DoV, $/sh  
IV at current val. algorithm, $/sh76.5 77

The original valuation is based on fiscal year data as of 2021-12-31 and quarterly data as of 2022-09-30.

Registered users can save their valuation input data

  1. Annual
  2. Quarterly YoY
  3. Quarterly QoQ

Annual revenue growth rates, % (past and forecasted)

NOTE: The bar chart shows historic and forecasted yearly revenue growth rates. Its purpose is to help you in determining what initial revenue rate you want to base your stock valuation on. Please make sure that you are confident in the value you select - for most stocks it is by far the most important parameter in valuation.

Company description

International Business Machines Corporation provides integrated solutions and services worldwide. The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. The Software segment offers hybrid cloud platform and software solutions, such as Red Hat, an enterprise open-source solutions; software for business automation, AIOps and management, integration, and application servers; data and artificial intelligence solutions; and security software and services for threat, data, and identity. This segment also provides transaction processing software that supports clients' mission-critical and on-premise workloads in banking, airlines, and retail industries. The Consulting segment offers business transformation services, including strategy, business process design and operations, data and analytics, and system integration services; technology consulting services; and application and cloud platform services. The Infrastructure segment provides on-premises and cloud-based server and storage solutions for its clients' mission-critical and regulated workloads; and support services and solutions for hybrid cloud infrastructure, as well as remanufacturing and remarketing services for used equipment. The Financing segment offers lease, installment payment, loan financing, and short-term working capital financing services. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2021(a)2022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046

INCOME STATEMENT

Revenue growth rate, %3.9NaN
Revenue, $57351NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $m51099NaN
Operating income, $m6252NaN
EBITDA, $m12669NaN
Interest expense (income), $mNaN
Earnings before tax, $m5867NaN
Tax expense, $m124NaN
Net income, $m5743NaN

BALANCE SHEET

Cash and short-term investments, $m7557NaN
Total assets, $m132001NaN
Adjusted assets (=assets-cash), $m124444NaN
Average production assets, $m77173NaN
Working capital, $m-5177NaN
Total debt, $m55140NaN
Total liabilities, $m113100NaN
Total equity, $m18901NaN
Debt-to-equity ratio2.917NaN
Adjusted equity ratio0.154NaN

CASH FLOW

Net income, $m5743NaN
Depreciation, amort., depletion, $m6417NaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $m12796NaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $m-1675NaN
Free cash flow, $m14471NaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $m-5177
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN
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