IBM’s Strategic Initiatives, Part 1: How Much Value Can Be Added To IBM’s Revenue And EBITDA To strategic Initiatives?
International Business Machine (NYSE:IBM) reported that its annualised revenue run rate from its strategic initiatives, which includes analytics, cloud, mobile, security and social, was $31 billion in Q2. In the first part, we explore the revenue and EBITDA the new strategic initiatives can add. In the second part, we estimate the value this business will add to IBM’s stock value.
Based on the total addressable market (TAM), we estimate that IBM can add nearly $18 billion (conservatively) to its topline and $3.49 billion to EBITDA. Our analysis is as follows:
Have more questions about IBM? See the links below.
- What’s IBM’s Revenue And Earnings Breakdown?
- By What Percentage Did IBM’s Revenues And EBITDA Decline In The Last Five Years?
- How Has IBM’s Revenue Composition Changed Over The Last 5 Years?
- How Will Shift To Cloud Impact IBM’s Revenue & EBITDA Growth In The Next 3 Years?
- What’s IBM’s Fundamental Value Based On Expected 2015 Results?
- How Has Transition From Hardware To Cloud Impacted Capex In The Last Five Years?
- How Much Can Watson Add To IBM’s GBS Revenue And EBITDA In 2022?
- Why Did IBM’s Software Revenue Decline In 2015?
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for IBM