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Presented By : April Hamilton Hayley Vaught Carlos Melendez. IBM Business . International Business Machines Corporation (IBM) is an informative technology company. The Company operates under five segments Global Technology Services Segment Global Business Services Segments
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IBM Business • International Business Machines Corporation (IBM) is an informative technology company. • The Company operates under five segments • Global Technology Services Segment • Global Business Services Segments • Software Segment • System and Technology Segment • Global Financing Segment
IBM vs. Sector IBM Industry Market Cap – 1.9 Billion Beta – 1.0 P/E Ratio – 23.2 Dividend Yield – 1.67 ROE – 21.50 % • Market Cap – 166.6 Billion • Beta - .8 • P/E Ratio – 12.8 • Dividend Yield - .55 • ROE – 74.37 % IBM ROE ratio shows that is able to reinvest its earnings more efficiently than 98% of its competitors in the Computer Services Industry. Typically, company’s that have higher ROE values are more attractive to Investors.
Fair Value • P / E = 12.8 • EPS = 10.0133 • Growth Rate (EPS) = 12.2 • Formula (12.8 X 10.013) X ( 1 + .1219) = 143.79
Ratio • P / CF = 10.28 • P / S = 1.74 • P / E = 12.81
Suggestion BUY!