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:
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Have more questions about IBM? See the links below.
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