Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

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Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel LibreOffice Calc

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Free Cash Flow to The Firm (FCFF)

International Business Machines Corp., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income attributable to IBM
Net income attributable to noncontrolling interest
Net noncash charges
Changes in operating assets and liabilities, net of acquisitions/divestitures
Net cash provided by operating activities
Interest paid on debt, net of tax1
Interest capitalized, net of tax2
Payments for property, plant and equipment
Proceeds from disposition of property, plant and equipment
Investment in software
Free cash flow to the firm (FCFF)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the International Business Machines Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. International Business Machines Corp. FCFF increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Interest Paid, Net of Tax

International Business Machines Corp., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR1
Interest Paid, Net of Tax
Interest paid on debt, before tax
Less: Interest paid on debt, tax2
Interest paid on debt, net of tax
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax
Less: Interest capitalized, tax3
Interest capitalized, net of tax

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 2021 Calculation
Interest paid on debt, tax = Interest paid on debt × EITR
= × =

3 2021 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= × =


Enterprise Value to FCFF Ratio, Current

International Business Machines Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Valuation Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors1
Accenture PLC
Adobe Inc.
Automatic Data Processing Inc.
Fidelity National Information Services Inc.
Intuit Inc.
Mastercard Inc.
Microsoft Corp.
Oracle Corp.
PayPal Holdings Inc.
salesforce.com inc.
ServiceNow Inc.
Visa Inc.
EV/FCFF, Sector
Software & Services
EV/FCFF, Industry
Information Technology

Based on: 10-K (reporting date: 2021-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

International Business Machines Corp., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1
Free cash flow to the firm (FCFF)2
Valuation Ratio
EV/FCFF3
Benchmarks
EV/FCFF, Competitors4
Accenture PLC
Adobe Inc.
Automatic Data Processing Inc.
Fidelity National Information Services Inc.
Intuit Inc.
Mastercard Inc.
Microsoft Corp.
Oracle Corp.
PayPal Holdings Inc.
salesforce.com inc.
ServiceNow Inc.
Visa Inc.
EV/FCFF, Sector
Software & Services
EV/FCFF, Industry
Information Technology

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. International Business Machines Corp. EV/FCFF ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.