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?
- 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?
- IBM Stock Gains 10% Over The Last Month On Strong Earnings, AI Progress. What’s Next?
- With Stock Down 1% YTD, Will Lackluster IT Spending Impact IBM’s Q3 Results?
- How Will IBM Stock Trend Post Q2 Earnings?
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