Research / Stock / IBM
I
IBM
INTERNATIONAL BUSINESS MACHINES CORP
234.19
+3.15 +1.36%
close 2026-08-25
Assumptions
-2.9%
Market is pricing -2.9%— you agree
Actually grew -4.9%/yrFCF, 2020–2025 — the market is pricing 2.0pts FASTER than history
10 yrs
3.00%
6.46%
6.5% derived for this company beta 0.64 (1254d vs the S&P 500) · cost of equity 7.6% = 4.7% risk-free + 0.64 × 4.5% premium · 22% debt at 3.2%, taxed at 21% effective tax rate unusable; US statutory 21% assumed
Fair value
$233.53
-0.3%
At the market's assumptionsCurrent price $234.19Enterprise value 219.1B
Bear $153.50 (-7.9% growth)Bull $356.06 (2.1%)
Today's market price is inside the range · band = your growth ±5pts, same model · the market itself prices -2.9%
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Present value of each projected year, Y1–Y10
34% the 10 forecast years66% terminal value