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, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income attributable to IBM 6,023 7,502 1,639 5,743 5,590
Net income attributable to noncontrolling interest 17 16 20 19 22
Net noncash charges 6,092 4,229 8,815 5,072 4,336
Changes in operating assets and liabilities, net of acquisitions/divestitures 1,313 2,184 (39) 1,962 8,249
Net cash provided by operating activities 13,445 13,931 10,435 12,796 18,197
Payments for property, plant and equipment (1,048) (1,245) (1,346) (2,062) (2,618)
Proceeds from disposition of property, plant and equipment 557 321 111 387 188
Investment in software (637) (565) (626) (706) (612)
Proceeds from new debt 5,705 9,586 7,804 522 10,504
Payments to settle debt (6,615) (5,082) (6,800) (8,597) (13,365)
Short-term borrowings (repayments) less than 90 days, net 30 (7) 217 (40) (853)
Free cash flow to equity (FCFE) 11,437 16,939 9,795 2,300 11,441

Based on: 10-K (reporting date: 2024-12-31), 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).

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 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Price to FCFE Ratio, Current

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

Microsoft Excel
No. shares of common stock outstanding 927,264,332
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 11,437
FCFE per share 12.33
Current share price (P) 246.21
Valuation Ratio
P/FCFE 19.96
Benchmarks
P/FCFE, Competitors1
Accenture PLC 20.47
Adobe Inc. 17.11
Cadence Design Systems Inc. 24.47
CrowdStrike Holdings Inc. 85.08
Intuit Inc. 37.85
Microsoft Corp. 38.90
Oracle Corp. 50.22
Palantir Technologies Inc. 185.14
Palo Alto Networks Inc. 55.87
Salesforce Inc. 24.65
ServiceNow Inc. 50.52
Synopsys Inc. 57.07
Workday Inc. 29.72
P/FCFE, Sector
Software & Services 36.86
P/FCFE, Industry
Information Technology 37.52

Based on: 10-K (reporting date: 2024-12-31).

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, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
No. shares of common stock outstanding1 927,264,332 916,744,848 907,105,611 899,309,986 893,594,090
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 11,437 16,939 9,795 2,300 11,441
FCFE per share3 12.33 18.48 10.80 2.56 12.80
Share price1, 4 257.75 184.13 129.30 123.92 120.71
Valuation Ratio
P/FCFE5 20.90 9.97 11.97 48.45 9.43
Benchmarks
P/FCFE, Competitors6
Accenture PLC 23.91 21.01 17.87 25.76 19.01
Adobe Inc. 18.02 41.83 21.32 34.26 41.36
Cadence Design Systems Inc. 24.08 71.40 33.41 36.31 45.86
CrowdStrike Holdings Inc. 85.82 42.65 99.63 41.38 880.68
Intuit Inc. 38.43 38.74 13.86 86.74 17.36
Microsoft Corp. 42.11 43.32 36.73 42.54 42.74
Oracle Corp. 48.38 15.47 — 8.36 6.27
Palantir Technologies Inc. 256.11 74.28 96.89 198.12 —
Palo Alto Networks Inc. 52.90 79.75 29.54 32.91 8.11
Salesforce Inc. 38.33 31.06 16.56 49.52 50.40
ServiceNow Inc. 61.82 58.19 44.44 64.54 49.83
Synopsys Inc. 63.08 57.04 33.41 40.55 45.07
Workday Inc. 36.59 19.79 49.17 40.57 74.21
P/FCFE, Sector
Software & Services 39.88 32.80 31.06 33.87 26.71
P/FCFE, Industry
Information Technology 36.62 33.19 26.96 27.33 23.40

Based on: 10-K (reporting date: 2024-12-31), 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).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 11,437,000,000 ÷ 927,264,332 = 12.33

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

5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 257.75 ÷ 12.33 = 20.90

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 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.