International Business Machines Corp. (IBM)

Enterprise Value (EV)

Difficulty: Intermediate

International Business Machines Corp., current enterprise value calculation

Current share price (P)	$ 144.90
No. shares of common stock outstanding	921,167,894
USD $ in millions
Common equity (market value)	133,477
Add: Noncontrolling interests (per books)	131
Total equity	133,608
Add: Short-term debt (per books)	6,987
Add: Long-term debt (per books)	39,837
Total equity and debt	180,432
Less: Cash and cash equivalents	11,972
Less: Marketable securities	608
Enterprise value (EV)	167,852

International Business Machines Corp., EV calculation

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
No. shares of common stock outstanding¹	921,167,894	943,212,551	960,880,915	988,424,172	1,041,340,758
Share price^1, 2 (USD $)	156.55	179.82	132.40	164.83	183.23
USD $ in millions
Common equity (market value)	144,209	169,608	127,221	162,922	190,805
Add: Noncontrolling interests (per books)	131	146	162	146	137
Total equity	144,340	169,754	127,383	163,068	190,942
Add: Short-term debt (per books)	6,987	7,513	6,461	5,731	6,862
Add: Long-term debt (per books)	39,837	34,655	33,428	35,073	32,856
Total equity and debt	191,164	211,922	167,272	203,872	230,660
Less: Cash and cash equivalents	11,972	7,826	7,686	8,476	10,716
Less: Marketable securities	608	701	508	–	350
Enterprise value (EV)	178,584	203,395	159,078	195,396	219,594

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of International Business Machines Corp.'s Annual Report.

Item	Description	The company
EV	Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.	International Business Machines Corp.'s EV increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.