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Is this Large Market Cap Stock target price reasonable for International Business Machines Corporation (NYSE:IBM)?

The company in question is, International Business Machines Corporation (NYSE:IBM) currently with a stock price of 154.77 (0.21% today). The market cap for International Business Machines Corporation is 148176.8, and is in the sector Technology, and Information Technology Services industry. The target price for International Business Machines Corporation is 154.12. Currently International Business Machines Corporation is trading with a P/E of 12.57, and a forward P/E of 10.98. Average volume for International Business Machines Corporation is 3231.05 and so far today it is 5327000.

Performance in the last year for International Business Machines Corporation has been 6.87%. For EPS growth, International Business Machines Corporation has seen a growth of -12.80%, and is looking to grow in the next year to 4.29%. More long term stats show that EPS growth has been 3.40% over the last five years and could be 2.85% for the next five years. International Business Machines Corporation has seen sales growth quarter over quarter at -2.80%, with EPS growth quarter over quarter at -27.00%. The 20-day simple moving average is -2.11%, with the 200-day simple moving average coming to 5.81%.

Since the IPO date for International Business Machines Corporation on the 1/2/1962, International Business Machines Corporation has seen performance year to date to be 15.70%. With International Business Machines Corporation trading at 154.77, the dividend yield is 3.62%, and the EPS is 12.31.

So could International Business Machines Corporation, be undervalued? Well as said before P/E is 12.57. The PEG is 4.41, P/S is 1.85 and the P/B is at 9.42. The P/cash is 13.96, with P/free cash flow at 16.07.

International Business Machines Corporation ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 1.2. This is with long term debt/equity at 2.52, and total debt/equity at 2.83.

In terms of margins, International Business Machines Corporation has a gross margin of 48.90%, an operating margin of 14.70% and a profit margin of 14.90%.Payout ratio for International Business Machines Corporation is 43.00%. Return on assets come to 10.50% with return on investment coming to 23.40%.

Insider ownership for International Business Machines Corporation, is at 0.05% and institutional ownership comes to 59.70%. Outstanding shares are at 957.4. While shares float is 953.81. The float short is currently 2.42%, and short ratio is 7.16.

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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Mark Hines

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