Transcript Presented By : April Hayley Vaught Carlos Melendez

Presented By :
April Hamilton
Hayley Vaught
Carlos Melendez
IBM Business
• International Business Machines Corporation
(IBM) is an informative technology company.
• The Company operates under five segments
– Global Technology Services Segment
– Global Business Services Segments
– Software Segment
– System and Technology Segment
– Global Financing Segment
Products
IBM vs. Sector
IBM
• Market Cap – 166.6 Billion
• Beta - .8
• P/E Ratio – 12.8
• Dividend Yield - .55
• ROE – 74.37 %
Industry
• Market Cap – 1.9 Billion
• Beta – 1.0
• P/E Ratio – 23.2
• Dividend Yield – 1.67
• ROE – 21.50 %
IBM ROE ratio shows that is able to reinvest its earnings more
efficiently than 98% of its competitors in the Computer Services
Industry. Typically, company’s that have higher ROE values are more
attractive to Investors.
Market Capitalization among Peers
Dell
4%
IBM
25%
AAPL
32%
CSC
1%
MSFT
38%
Peers and Competitors
IBM
Price Per Share
Dell
Apple
Microsoft
128.25
15.05
235.97
29.16
EPS
10.0133
0.7303
10.2464
1.81
P/E
12.08X
20.6X
23.03X
16.0 X
0.55
0
0
0.13
166.6
29.5
214
255.7
ROI
19.2
10.88
27.18
33.03
ROE
74.37
28.9
31.9
41.28
Dividend
Market Cap
Fair Value
•
•
•
•
P / E = 12.8
EPS = 10.0133
Growth Rate (EPS) = 12.2
Formula
(12.8 X 10.013) X ( 1 + .1219) =
143.79
Ratio
•P / CF = 10.28
•P / S = 1.74
•P / E = 12.81
Suggestion
BUY!