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International Business Machines (IBM) is a leading information technology services business based in the US. It opened the day at USD$139.24 after a previous close of USD$138.44. During the day the price has varied from a low of USD$139.24 to a high of USD$142.365. The latest price was USD$142.06 (25 minute delay). IBM is listed on the NYSE and employs 282,100 staff. All prices are listed in US Dollars.
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How to buy shares in IBM
- Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
- Open your brokerage account. Complete an application with your details.
- Confirm your payment details. Fund your account.
- Research the stock. Find the stock by name or ticker symbol – IBM – and research it before deciding if it's a good investment for you.
- Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
- Check in on your investment. Optimize your portfolio by tracking your stock.
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IBM shares at a glance
Information last updated 2022-06-24.
| Open | $139.24 |
|---|---|
| High | $142.37 |
| Low | $139.24 |
| Close | $142.06 |
| Previous close | $138.44 |
| Change | $3.62 |
| Change % | 2.6149% |
| Volume | 6,910,339 |
Information last updated 2022-06-20.
| 52-week range | $111.84 - $144.73 |
|---|---|
| 50-day moving average | $134.55 |
| 200-day moving average | $129.91 |
| Wall St. target price | $143.63 |
| PE ratio | 22.1744 |
| Dividend yield | $6.57 (4.89%) |
| Earnings per share (TTM) | $6.09 |
IBM stock price (NYSE:IBM)
Use our graph to track the performance of IBM stocks over time.IBM price performance over time
Historical closes compared with the close of $142.06 from 2022-06-24
| 1 week (2022-06-17) | 5.21% |
|---|---|
| 1 month (2022-05-25) | 5.71% |
| 3 months (2022-03-21) | N/A |
| 6 months (2021-12-21) | 10.15% |
| 1 year (2021-06-25) | -3.26% |
|---|---|
| 2 years (2020-06-25) | 19.35% |
| 3 years (2019-06-25) | 2.67% |
| 5 years (2017-06-23) | 153.9715 |
Is IBM under- or over-valued?
Valuing IBM stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of IBM's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
IBM's P/E ratio
IBM's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 22x. In other words, IBM shares trade at around 22x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
IBM's PEG ratio
IBM's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.5334. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into IBM's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
IBM's EBITDA
IBM's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $12.1 billion.
The EBITDA is a measure of a IBM's overall financial performance and is widely used to measure a its profitability.
IBM financials
| Revenue TTM | $58.4 billion |
|---|---|
| Operating margin TTM | 10.48% |
| Gross profit TTM | $31.5 billion |
| Return on assets TTM | 2.71% |
| Return on equity TTM | 24.48% |
| Profit margin | 9.46% |
| Book value | $21.18 |
| Market capitalisation | $121 billion |
TTM: trailing 12 months
IBM's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like IBM.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
IBM's total ESG risk score
Total ESG risk: 17.23
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and IBM's overall score of 17.23 (as at 12/31/2018) is excellent – landing it in it in the 14th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like IBM is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
IBM's environmental score
Environmental score: 0.91/100
IBM's environmental score of 0.91 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that IBM is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
IBM's social score
Social score: 7.08/100
IBM's social score of 7.08 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that IBM is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
IBM's governance score
Governance score: 5.75/100
IBM's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that IBM is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
IBM's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. IBM scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that IBM has, for the most part, managed to keep its nose clean.
IBM share dividends
Dividend payout ratio: 67.67% of net profits
Recently IBM has paid out, on average, around 67.67% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.89% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), IBM shareholders could enjoy a 4.89% return on their shares, in the form of dividend payments. In IBM's case, that would currently equate to about $6.57 per share.
IBM's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
IBM's most recent dividend payout was on 9 June 2022. The latest dividend was paid out to all shareholders who bought their shares by 8 May 2022 (the "ex-dividend date").
Have IBM's shares ever split?
IBM's shares were split on a 1046:1000 basis on 3 November 2021. So if you had owned 1000 shares the day before before the split, the next day you'd have owned 1046 shares. This wouldn't directly have changed the overall worth of your IBM shares – just the quantity. However, indirectly, the new 4.4% lower share price could have impacted the market appetite for IBM shares which in turn could have impacted IBM's share price.
IBM share price volatility
Over the last 12 months, IBM's shares have ranged in value from as little as $111.8398 up to $144.73. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while IBM's is 1.0041. This would suggest that IBM's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
IBM overview
International Business Machines Corporation provides integrated solutions and services worldwide. The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. The Software segment offers hybrid cloud platform and software solutions, such as Red Hat, an enterprise open-source solutions; software for business automation, AIOps and management, integration, and application servers; data and artificial intelligence solutions; and security software and services for threat, data, and identity. This segment also provides transaction processing software that supports clients' mission-critical and on-premise workloads in banking, airlines, and retail industries. The Consulting segment offers business transformation services, including strategy, business process design and operations, data and analytics, and system integration services; technology consulting services; and application and cloud platform services. The Infrastructure segment provides on-premises and cloud-based server and storage solutions for its clients' mission-critical and regulated workloads; and support services and solutions for hybrid cloud infrastructure, as well as remanufacturing and remarketing services for used equipment. The Financing segment offers lease, installment payment, loan financing, and short-term working capital financing services.
Frequently asked questions
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances and obtain your own advice before making any trades.
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