International Business Machines Corporation Stock Price and Value Analysis

Should you buy International Business Machines Corporation stock? (NYSE:IBM). Let's see how it does in our automated value investing analysis system.

IBM Free Cash Flow Trend

Free Cash Flow trendline for IBM
Free Cash Flow trendline for International Business Machines Corporation

Hmm, we can't give any reliable projection for International Business Machines Corporation's growth rate. The company either has too few years of historical data for us to examine, or it's in the habit of losing money.

None of this means it's a bad stock. Maybe it's new and growing quickly, or maybe it's turning things around. We can't say anything sensible about it, so we won't say it's obviously undervalued right now. Proceed at your own risk!

AdvantagesDisadvantages
  • This company has a large dividend yield!
  • This company is a well-established bedrock.
  • This stock looks overpriced.
  • This company is not making money.
  • This company has wild ups and downs.

Inside the IBM Numbers

IBM Price
(International Business Machines Corporation stock price per share)
$122.83
[?] PE Ratio versus Sector 19% higher than other Technology stocks
[?] PE Ratio versus Industry 12% lower than other Information Technology Services stocks
[?] Cash Yield 15.21%
[?] Free Cash Flow Jitter 343%
[?] Dividend Yield 5%
Shares Shorted 29,057,711

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 29,057,711 shares shorted. With 891,967,749 shares available for purchase and an average trading volume over the past 10 trading days of 6,607,385, it would take at least 4.398 days for all of the short holders to cover their shorts.

Is International Business Machines Corporation Stock on Sale?

Based on our analysis, we believe that you should not buy International Business Machines Corporation right now. It might be a good stock to own—we just can't prove it with value analysis right now. Proceed with caution.

Should You Buy IBM Stock?

Does International Business Machines Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.