Enterprise Value (EV)
Current Enterprise Value (EV)
International Business Machines Corp., current enterprise value calculation
| Current share price (P) | $289.70 |
| No. shares of common stock outstanding | 929,396,575 |
| US$ in millions | |
| Common equity (market value)1 | 269,246) |
| Add: Noncontrolling interests (per books) | 86) |
| Total equity | 269,332) |
| Add: Short-term debt (per books) | 5,089) |
| Add: Long-term debt, excluding current maturities (per books) | 49,884) |
| Total equity and debt | 324,305) |
| Less: Cash and cash equivalents | 13,947) |
| Less: Restricted cash | 214) |
| Less: Marketable securities | 644) |
| Enterprise value (EV) | 309,500) |
Based on: 10-K (reporting date: 2024-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 289.70 × 929,396,575
Historical Enterprise Value (EV)
International Business Machines Corp., EV calculation
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of International Business Machines Corp. Annual Report.
3 2024 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 257.75 × 927,264,332
- Equity and Market Value Trends
- There is a consistent upward trend in both common equity (market value) and total equity over the five-year period from December 31, 2020, to December 31, 2024. Specifically, common equity increased from approximately 107.9 billion US dollars in 2020 to 239.0 billion US dollars in 2024, representing more than a doubling in value. Total equity followed a highly similar trajectory, rising from roughly 108.0 billion to 239.1 billion US dollars over the same span. This growth indicates a strengthening equity position and likely reflects either retained earnings increases, equity issuances, or market revaluations.
- Total Equity and Debt
- The combined value of total equity and debt also shows a steady upward trend, increasing from about 169.5 billion US dollars in 2020 to 294.1 billion US dollars by the end of 2024. The expansion in this figure corroborates an overall growth in the capital structure of the company, with significant increases particularly noticeable in the later years, suggesting possible additional debt financing or growth in assets financed by debt.
- Enterprise Value (EV)
- Enterprise value experienced moderate growth initially, moving from 155.3 billion US dollars in 2020 to approximately 159.5 billion US dollars in 2022. However, the EV experienced a more pronounced increase in the last two years, reaching 279.3 billion US dollars by the end of 2024. This progression reflects a strengthening of the overall valuation of the business, consistent with the increases in equity and total capitalization, indicating potentially enhanced operational performance, market perception, or asset base expansion.
- Summary of Trends
- Overall, the data exhibits strong growth momentum in the financial position from 2020 through 2024. Both equity and enterprise valuation metrics suggest the company has expanded its capital base and market value significantly. The parallel increase in total equity and debt implies a balanced approach to financing growth, combining both equity and debt components to support the company’s expansion. The accelerated growth in market value and enterprise value toward the later years highlights potentially improving business fundamentals or positive market sentiment.