Company Of The Day: IBM
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?
- IBM Stock vs. Delta Air Lines
- Up 30% In Last Twelve Months, Will AI And Red Hat Power IBM’s Stock Higher Post Q2 Results?
- Watsonx Can Help IBM Stock Gain Lost Ground
- Up 14% This Year, Will IBM’s Gains Continue Following Q1 Results?
- Up 17% This Year, Why Is IBM Stock Outperforming?
- Up 21% In The Last Six Months, Will IBM Stock See Further Gains Post Q4?
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