Use access key #2 to skip to page content.
$129.52 0.00 (0.00%)
7/23/2008 4:00 PM

International Business Machines Corp. (IBM)

CAPS Rating:
***

The Company is a globally integrated innovation company, serving the needs of enterprises and institutions worldwide.

View All Commentary (IBM)

Recs

7

Avatar irishmanbob (< 20) Submitted: 11/06/07 10:49 PM : Outperform Start Price: $112.67 IBM Score: 29.73

IBM, like many of the large cap stocks of late, has been languishing until recently. It's P/E ratio of 16-17 makes it look more like an old line manufacturing company rather than the high-flying technical innovative leader that it really is. IBM is normally at or near the top of the list of most innovative companies in the world, as measured by the numbers of international patents filed.

Since breaking out of a five year downward trendline at the beginning of 2007, it has been on an upward path that's raised it about 15% so far this year. I don't see this faltering for about another year, until it gets back up to the previous 1999 high of about 130. That's about a 13% growth rate. I don't think the S&P, or the DOW will do that well over the year 2008.

Report this Post Replies: 1 | Reply

Avatar xnicholas (73.47) Submitted: 3/06/08 9:30 PM

Recs: 0 | Rec This

Average PE ratio is very high for ibm the past 5 years. Also earnings have not been growing, and shareholder equity is really @#$%y ( shareholder eq is 30b and market cap is 150b thats 5x)


If you want real good PE ratio look at toyota.
http://finance.yahoo.com/q?s=TM
9 PE toyoyta vs 15 PE IBM
Shareholder equity is 100Bn and MARKET CAP is 160Bn 1.6x

More people buy from toyota than from IBM. Toyota is the strongest auto maufacturer in the world. IBM is just one of the many many many IT companies in a constantly changing marketplace. I do not think IBM will double in size in the next 5 years, toyota might.

Report this Post Reply

Featured Broker Partners