Stock Analysis on Net
Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

Price to FCFE (P/FCFE)

Microsoft Excel

Free Cash Flow to Equity (FCFE)

International Business Machines Corp., FCFE calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income attributable to IBM 7,502 1,639 5,743 5,590 9,431
Net income attributable to noncontrolling interest 16 20 19 22 25
Net noncash charges 4,229 8,815 5,072 4,336 4,089
Changes in operating assets and liabilities, net of acquisitions/divestitures 2,184 (39) 1,962 8,249 1,225
Net cash provided by operating activities 13,931 10,435 12,796 18,197 14,770
Payments for property, plant and equipment (1,245) (1,346) (2,062) (2,618) (2,286)
Proceeds from disposition of property, plant and equipment 321 111 387 188 537
Investment in software (565) (626) (706) (612) (621)
Proceeds from new debt 9,586 7,804 522 10,504 31,825
Payments to settle debt (5,082) (6,800) (8,597) (13,365) (12,944)
Short-term borrowings (repayments) less than 90 days, net (7) 217 (40) (853) (2,597)
Free cash flow to equity (FCFE) 16,939 9,795 2,300 11,441 28,684

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to International Business Machines Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. International Business Machines Corp. FCFE increased from 2021 to 2022 and from 2022 to 2023.

Price to FCFE Ratio, Current

International Business Machines Corp., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel
No. shares of common stock outstanding 924,645,152
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 16,939
FCFE per share 18.32
Current share price (P) 210.25
Valuation Ratio
P/FCFE 11.48
Benchmarks
P/FCFE, Competitors1
Accenture PLC 23.43
Adobe Inc. 34.14
Autodesk Inc. 52.41
Cadence Design Systems Inc. 71.67
CrowdStrike Holdings Inc. 93.21
Intuit Inc. 39.73
Microsoft Corp. 41.61
Oracle Corp. 64.30
Palo Alto Networks Inc. 61.13
Salesforce Inc. 40.22
ServiceNow Inc. 77.87
Synopsys Inc. 54.29
P/FCFE, Sector
Software & Services 41.88
P/FCFE, Industry
Information Technology 51.78

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

International Business Machines Corp., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 916,744,848 907,105,611 899,309,986 893,594,090 888,408,023
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 16,939 9,795 2,300 11,441 28,684
FCFE per share3 18.48 10.80 2.56 12.80 32.29
Share price1, 4 184.13 129.30 123.92 120.71 141.71
Valuation Ratio
P/FCFE5 9.97 11.97 48.45 9.43 4.39
Benchmarks
P/FCFE, Competitors6
Accenture PLC 21.03 17.91 25.76 19.01 19.50
Adobe Inc. 41.83 21.32 34.26 41.36 41.90
Autodesk Inc. 25.55 16.66 64.43 24.07 41.92
Cadence Design Systems Inc. 71.40 33.41 36.31 45.86 36.04
CrowdStrike Holdings Inc. 42.65 99.63 41.38 880.68 —
Intuit Inc. 38.74 13.86 86.74 17.36 34.61
Microsoft Corp. 43.32 36.73 42.54 42.74 30.77
Oracle Corp. 15.47 — 8.36 6.27 22.31
Palo Alto Networks Inc. 79.75 29.54 32.91 8.11 46.20
Salesforce Inc. 31.06 16.56 49.52 50.40 29.09
ServiceNow Inc. 58.13 44.44 64.54 49.83 68.98
Synopsys Inc. 57.04 33.41 40.55 45.07 77.64
P/FCFE, Sector
Software & Services 32.73 30.44 33.85 25.89 22.16
P/FCFE, Industry
Information Technology 33.47 26.69 27.52 23.46 19.14

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 16,939,000,000 ÷ 916,744,848 = 18.48

4 Closing price as at the filing date of International Business Machines Corp. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 184.13 ÷ 18.48 = 9.97

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. International Business Machines Corp. P/FCFE ratio decreased from 2021 to 2022 and from 2022 to 2023.