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International Business Machines Corporation (NYSE: IBM) – Is this large market cap stock undervalued?

International Business Machines Corporation (NYSE: IBM), is firmly in the large market cap category with market cap of 148622.92. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for International Business Machines Corporation is 153.58 (with a change from open of -0.08%), this in conjunction with a target price of 156.48. Volume today has so far reached 1641404, with an average volume of about 3217.66. The GAP for this stock, is -0.38%.

The P/E ratio is 12.53, bringing the forward P/E to a value of 10.95. The current EPS for International Business Machines Corporation, is 12.31, with a EPS growth for this year coming to a value of -12.80%. Performance has been interesting with performance year to date coming to 15.34%.

Looking further into the growth statistics for International Business Machines Corporation, EPS is looking like it will grow 4.29% in the next year. Looking even further it is projected to be 2.85%. Quarter over quarter is -27.00% for EPS growth and for sales growth quarter over quarter it is -2.80%. Looking at past EPS growth statistics we see that for the past five years it has been 3.40%. Sales growth for the past five years has in fact been -3.90%.

Looking at the ownership, we see that the insider ownership is at 0.05% and institutional ownership is 59.90%. Shares outstanding is 963.27, while shares float is at a value of 955.27. Float short for International Business Machines Corporation is 2.43% and the short ratio is 7.22.

In terms of debt, long term debt/equity is 2.52, while the total debt/equity comes to 2.83. The ability to meet these debts, means that the current ratio is 1.3, and the quick ratio is 1.2. The most recent gross margin is 48.90% and their operating margin is 14.70%. The profit margin is 14.90%.

International Business Machines Corporation has seen returns on assets of 10.50%, and on investment, 23.40%. Return on equity is 82.00%. Price/Earnings to growth ratio is 4.4. Price/Sales ratio is at a value of 1.85, with Price/book ratio coming to 9.39 and Price/cash is 14, and finally Price/Free cash Flow is 16.12.

The simple moving averages are -3.00% and 5.13% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -6.92% and the 52 week low is 33.90%.

International Business Machines Corporation has a dividend yield of 3.63%, with a current price of 153.58. The ability to pay this means the payout ratio is 43.00%. This is in an industry, Information Technology Services, with equally high dividends from other companies in this sector, which it is Technology. International Business Machines Corporation is based in USA.

Performance in the Information Technology Services industry means that International Business Machines Corporation has seen performance for the past week of -1.78%, with performance for the month coming to -0.98%. Looking at the data for the quarter it is at a value of -2.91%, and for the half year the performance is 7.08%. Volatility for this week is 1.44% and for the month this is 1.47%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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