Tuesday, July 12, 2022 10:46 AM | InvestorsObserver Analysts
Mentioned in this article
IBM Common Stock (IBM) receives a strong valuation ranking of 66 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. IBM has a better value than 66% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.
IBM gets a 66 Valuation Rank today. Find out what this means to you and get the rest of the rankings on IBM!
Metrics Analysis
IBM has a trailing twelve month Price to Earnings (PE) ratio of 23.1. The historical average of roughly 15 shows a poor value for IBM stock as investors are paying higher share prices relative to the company's earnings. IBM's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 6.11 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.IBM currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.58. The market is currently overvaluing IBM in relation to its projected growth due to the PEG ratio being above the fair market value of 1. IBM's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.Summary
IBM' has a weak valuation at its current share price on account of a overvalued PEG ratio despite strong growth. IBM's PE and PEG are worse than the market average leading to a below average valuation score. Click Here to get the full Report on IBM Common Stock (IBM) stock.Stay In The Know
Subscribe to our daily morning update newsletter and never miss out on the need-to-know market news, movements, and more.
Thank you for signing up! You're all set to receive the Morning Update newsletter
Related Articles
-
Shopify Inc (SHOP) Upgraded to Overweight from Equal Weight
Friday, April 19, 2024 09:39 AM | Bobby Raines
-
Fidelity National Information Servcs Inc (FIS) Director Buys 56,087 in Shares
Thursday, April 18, 2024 09:44 AM | Bobby Raines
-
Zscaler Inc (ZS) Upgraded to Overweight from Sector Weight
Thursday, April 18, 2024 09:44 AM | Bobby Raines
-
Science Applications International Corp (SAIC) CEO Buys 377,894 in Shares
Wednesday, April 17, 2024 09:42 AM | Bobby Raines
-
Advanced Micro Devices, Inc. (AMD) Upgraded to Buy from Hold
Tuesday, April 16, 2024 09:40 AM | Bobby Raines
-
Unusual Options Activity: Call Buying on Taiwan Semiconductor
Monday, April 15, 2024 11:24 AM | Bobby Raines
