Source: Shutterstock Key Insights International Business Machines’ estimated fair value is US$163 based on 2 Stage Free Cash Flow to Equity International Business Machines’ US$135 share price indicates it is trading at similar levels as its fair value estimate In this article we are going to estimate the intrinsic value of International Business Machines Corporation ( NYSE:IBM ) by estimating the company’s future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. There’s really not all that much to it, even though it might appear quite complex. Remember though, that there are many ways to estimate a company’s value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model . Is International Business Machines Fairly Valued? We’re using the 2-stage growth model, which simply means we take in account two stages of company’s growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
