IBM IBM
fair · 66
Owner-earnings value$246.83
Price$227.06
Margin of safety
+8.7%
Quality gate · 66/100
Median ROIC11.1%
Gross margin58.1%
Net debt / EBITDA2.9x
FCF conversion170%
Share count / yr+1.1%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 13.14B |
| Owner-earnings yield | 6.1% |
| Free-cash-flow yield | 6.1% |
| Growth used (normalized) | 3.7% |
| Market-implied growth (reverse DCF) | 1.7% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.0% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 13.63B | 3.7% | 12.51B |
| 2 | 14.13B | 3.6% | 11.89B |
| 3 | 14.63B | 3.6% | 11.30B |
| 4 | 15.14B | 3.5% | 10.73B |
| 5 | 15.66B | 3.4% | 10.17B |
| 6 | 16.17B | 3.3% | 9.64B |
| 7 | 16.70B | 3.2% | 9.13B |
| 8 | 17.23B | 3.2% | 8.65B |
| 9 | 17.76B | 3.1% | 8.18B |
| 10 | 18.29B | 3.0% | 7.73B |
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⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~2%/yr owner-earnings growth over 10y (reverse DCF); model credits 4%.