International Stock Valuation

IBM
 Stock
  

USD 134.01  1.47  1.11%   

What is the enterprise value of International Business? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as International Business, is its stock price multiplied by the total number of shares outstanding, calculating International Business' enterprise value requires a different approach. It uses International Business' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
International Business Free Cash Flow is relatively stable at the moment as compared to the past year. The company's current value of Free Cash Flow is estimated at 11.13 Billion. Tangible Asset Value is expected to hike to about 68 B this year, although Enterprise Value will most likely fall to nearly 169.9 B.
International Business retains a regular Real Value of $140.89 per share. The prevalent price of the firm is $134.01. At this time, the firm appears to be undervalued. Our model calculates the value of International Business from evaluating the firm fundamentals such as Current Valuation of 164.01 B, return on equity of 27.09 %, and Return On Asset of 3.00 % as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we encourage acquiring undervalued assets and dropping overvalued assets since, at some point, asset prices and their ongoing real values will come together.
  
International Business Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as International Business's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

International Most Recent Valuation Data

Price Book
6.12
EPS Estimate Next Quarter
2.37
Price Sales
2.01
Forward Annual Dividend Yield
0.0498
EBITDA
12.2 B
Dividend Share
6.58
Ex Dividend Date
2022-08-09
Undervalued
Today 134.01
Please note that International Business' price fluctuation is very steady at this time. Calculation of the real value of International Business is based on 2 months time horizon. Increasing International Business' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for International Business Machines is useful when determining the fair value of the International stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of International Business. Since International Business is currently traded on the exchange, buyers and sellers on that exchange determine the market value of International Stock. However, International Business' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
120.61
Downside
140.89
Real Value
142.34
Upside
Estimating the potential upside or downside of International Business Machines helps investors to forecast how International stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of International Business more accurately as focusing exclusively on International Business' fundamentals will not take into account other important factors:
Earnings
Estimates (6)
LowProjected EPSHigh
9.6210.1010.65
Details
Hype
Prediction
LowEstimated ValueHigh
132.52133.97135.42
Details
9 Analysts
Consensus
LowTarget PriceHigh
124.00148.11170.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use International Business' intrinsic value based on its ongoing forecasts of International Business' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against International Business' closest peers. When choosing an evaluation method for International Business, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

International Business Investments

21 Billion

International Valuation Drivers Correlation

Many accounts on the financial statements of International Business are highly interrelated and sometimes correlated. Consequently, when conducting International's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of International
Click cells to compare fundamentals

International Valuation Trend

Knowing International Business' actual value is paramount for traders to make sound investment determinations. International Business' real value is not only important for the investor to make better decisions but also for a more accurate overall view of International Business' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both International Business' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

International Market Cap

International Business Machines is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Information Technology Services industry is currently estimated at about 1.47 Trillion. International Business holds roughly 116.05 Billion in market capitalization claiming about 8% of equities under Information Technology Services industry.
Capitalization  Valuation  Total debt  Revenue  Workforce

International Business Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining International Business's current stock value. Our valuation model uses many indicators to compare International Business value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across International Business competition to find correlations between indicators driving International Business's intrinsic value. More Info.
International Business Machines is currently regarded as number one stock in price to sales category among related companies. It is currently regarded as number one stock in price to book category among related companies fabricating about  2.69  of Price to Book per Price to Sales. Price to Book Value is expected to hike to 6.95 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value International Business by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for International Business' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the International Business' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates International Business' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in International Business and how it compares across the competition.

About International Business Valuation

The equity valuation mechanism determines the current worth of International Business Machines on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of International Business Machines. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of International Business based exclusively on its fundamental and basic technical indicators. By analyzing International Business's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of International Business's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of International Business. We calculate exposure to International Business's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to International Business's related companies.
Fiscal Year End
December
Industry
Information Technology Services
Concentration
IT Consulting & Other Services
Full Time Employees
282.1 K
Service Category
IT Services
Employer Id Number
13-0871985
Last ReportedProjected for 2022
Gross Profit31.5 B33.5 B
Profit Margin 0.10  0.11 
International Business Machines Corporation provides integrated solutions and services worldwide. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York. International Business operates under Information Technology Services classification in the United States and is traded on New York Stock Exchange. It employs 282100 people.

International Business Quarterly Enterprise Value

174.32 Billion

International Business' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether International Business' value is low or high relative to the company's performance and growth projections. Determining the market value of International Business can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of International Business represents a small ownership stake in the entity. As a stockholder of International, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

International Business Dividends Analysis For Valuation

The value of Payment of Dividends and Other Cash Distributions is expected to pull down to about (6.3 B). The value of Dividend Yield is estimated to pull down to 0.0464. International Business Earnings Before Interest Taxes and Depreciation Amortization EBITDA are relatively stable at the moment as compared to the past year. The company's current value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA is estimated at 15.22 Billion. Earnings before Tax is expected to hike to about 8.8 B this year, although the value of Price to Earnings Ratio will most likely fall to 19.75.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-5.9 B-6.3 B
Dividend Yield 0.049  0.0464 
Dividends per Basic Common Share 6.55  6.41 
There are various types of dividends International Business can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of International shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from International Business Machines directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When International pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of International Business by the value of the dividends paid out.

International Business Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as International Business does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.68
Earnings Quarterly Growth5.10%
Revenue Growth9.30%
Payout Ratio105.80%
Enterprise Value To Ebitda13.49
Earnings Growth4.10%
Enterprise Value To Revenue2.75

International Business Current Valuation Indicators

Valuation refers to the process of determining the present value of International Business Machines and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value International we look at many different elements of the entity such as International's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. International Business' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final International Business' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as International Business, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use International Business' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes International Business' worth.
Please see Risk vs Return Analysis. Note that the International Business information on this page should be used as a complementary analysis to other International Business' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

Complementary Tools for International Stock analysis

When running International Business price analysis, check to measure International Business' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy International Business is operating at the current time. Most of International Business' value examination focuses on studying past and present price action to predict the probability of International Business' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move International Business' price. Additionally, you may evaluate how the addition of International Business to your portfolios can decrease your overall portfolio volatility.
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Is International Business' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of International Business. If investors know International will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about International Business listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.041
Market Capitalization
120.1 B
Quarterly Revenue Growth YOY
0.093
Return On Assets
0.03
Return On Equity
0.27
The market value of International Business is measured differently than its book value, which is the value of International that is recorded on the company's balance sheet. Investors also form their own opinion of International Business' value that differs from its market value or its book value, called intrinsic value, which is International Business' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because International Business' market value can be influenced by many factors that don't directly affect International Business' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between International Business' value and its price as these two are different measures arrived at by different means. Investors typically determine International Business value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, International Business' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.