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Intrinsic value of International Business Machines Corporation (IBM)

Previous Close$128.48
Intrinsic Value
Upside potential
Previous Close
$128.48
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

Revenue, mln $
Initial revenue growth rate (norm.), %
Variable cost ratio, %
Fixed operating expenses, mln $
Production assets / Revenue, %
Working capital / Revenue, %
Interest rate on debt, %
Initial discount rate, %
Shares outstanding, mln
Adjusted equity ratio
Adjusted assets / Revenue
Cash & ST Investments
Total debt
Market cap, m$
115,388

Based on fiscal year data as of 2021-12-31 and quarterly data as of 2022-03-31.

  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.

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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