IBM IBM
Intrinsic value$142.67
Price (at call)$237.75
Margin of safety
-40.0%
vs market (rating basis)
+17.3%
Model unavailable; showing baseline valuation.
⚠ LLM error: empty response; using baseline
The story
Value drivers
| Revenue growth (Y1) | 3.7% |
| Terminal growth | 3.5% |
| Forecast horizon | 10y |
| Target operating margin | 17.9% |
| Years to target margin | 5 |
| Sales-to-capital | 0.74 |
| Beta | 0.71 |
| Failure probability | 0.0% |
| Cost of capital (WACC) | 8.1% |
| Terminal WACC | 9.1% |
Valuation bridge
| PV of explicit FCFF | 72.69B |
| PV of terminal value | 109.49B |
| Equity value | 134.42B |
| ÷ shares → per share | $142.67 |
News
bearish -0.20 · 8 articles
- IBM (IBM) Lands $1 Billion Quantum Foundry Award And Deepens AI Oversight
- IBM (IBM) Stock Could Trade At A Discount On AI Governance News
- Best Dividend Stocks to Buy for Dependable Dividend Growth
- Why Has Accenture Stock Surged With No New Results To Report?
- Is IBM Stock Riskier Than Its Options Market Now Assumes?
- IBM Secures $1 Billion Commerce Award as Quantum Foundry Starts Production
- Mastercard Gets In on Agentic Payment Systems of the Future
- Lockheed Martin Targets Drone Defense, Missile Output Surge With AI-Powered Strategy
Projected free cash flow to the firm
| Yr | Revenue | Growth | Margin | NOPAT | Reinvest | FCFF | PV |
|---|---|---|---|---|---|---|---|
| 1 | 71.67B | 3.7% | 17.9% | 12.83B | 3.49B | 9.34B | 8.64B |
| 2 | 74.31B | 3.7% | 17.9% | 13.30B | 3.60B | 9.70B | 8.31B |
| 3 | 77.04B | 3.7% | 17.9% | 13.79B | 3.71B | 10.08B | 7.98B |
| 4 | 79.85B | 3.6% | 17.9% | 14.29B | 3.82B | 10.48B | 7.67B |
| 5 | 82.74B | 3.6% | 17.9% | 14.81B | 3.93B | 10.88B | 7.37B |
| 6 | 85.72B | 3.6% | 17.9% | 15.34B | 4.04B | 11.30B | 7.08B |
| 7 | 88.78B | 3.6% | 17.9% | 15.89B | 4.16B | 11.73B | 6.80B |
| 8 | 91.93B | 3.5% | 17.9% | 16.45B | 4.28B | 12.17B | 6.53B |
| 9 | 95.17B | 3.5% | 17.9% | 17.03B | 4.40B | 12.63B | 6.27B |
| 10 | 98.50B | 3.5% | 17.9% | 17.63B | 4.53B | 13.10B | 6.02B |