Company Of The Day: IBM

+8.07%
Upside
134
Market
145
Trefis
IBM: International Business Machines logo
IBM
International Business Machines

What?

IBM (NYSE:IBM) posted a stronger than expected set of Q4 2021 earnings, with revenue rising 6% year-over-year to $16.70 billion and EPS coming in at $3.35.

Why?

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Growth was driven by the stronger performance of the software and consulting businesses.

So What?

We estimate IBM valuation at $142 per share, about 10% ahead of the current market price. This represents a P/EBITDA multiple of 12x for the company based on our forecast for IBM EBITDA for the current fiscal year.

See Our Complete Analysis For IBM

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

 Returns Jan 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 IBM Return -4% -4% -22%
 S&P 500 Return -7% -7% 97%
 Trefis MS Portfolio Return -10% -10% 252%

[1] Month-to-date and year-to-date as of 1/25/2022
[2] Cumulative total returns since the end of 2016

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