GURUFOCUS.COM » STOCK LIST » Technology » Software » International Business Machines Corp (BUE:IBM) » Definitions » Cyclically Adjusted Price-to-FCF

International Business Machines (BUE:IBM) Cyclically Adjusted Price-to-FCF : 12.72 (As of May. 23, 2024)


View and export this data going back to . Start your Free Trial

What is International Business Machines Cyclically Adjusted Price-to-FCF?

As of today (2024-05-23), International Business Machines's current share price is ARS14520.50. International Business Machines's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was ARS1,141.83. International Business Machines's Cyclically Adjusted Price-to-FCF for today is 12.72.

The historical rank and industry rank for International Business Machines's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

BUE:IBM' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 6.57   Med: 10.21   Max: 19.52
Current: 10.98

During the past years, International Business Machines's highest Cyclically Adjusted Price-to-FCF was 19.52. The lowest was 6.57. And the median was 10.21.

BUE:IBM's Cyclically Adjusted Price-to-FCF is ranked better than
83.05% of 649 companies
in the Software industry
Industry Median: 29.5 vs BUE:IBM: 10.98

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

International Business Machines's adjusted free cash flow per share data for the three months ended in Mar. 2024 was ARS34,254.206. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is ARS1,141.83 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


International Business Machines Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for International Business Machines's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

International Business Machines Cyclically Adjusted Price-to-FCF Chart

International Business Machines Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.23 8.37 8.94 9.28 10.61

International Business Machines Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.49 8.59 8.94 10.61 12.08

Competitive Comparison of International Business Machines's Cyclically Adjusted Price-to-FCF

For the Information Technology Services subindustry, International Business Machines's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


International Business Machines's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, International Business Machines's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where International Business Machines's Cyclically Adjusted Price-to-FCF falls into.



International Business Machines Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

International Business Machines's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=14520.50/1141.83
=12.72

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

International Business Machines's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, International Business Machines's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=34254.206/131.7762*131.7762
=34,254.206

Current CPI (Mar. 2024) = 131.7762.

International Business Machines Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 207.025 100.560 271.292
201409 232.394 100.428 304.935
201412 429.999 99.070 571.957
201503 234.647 99.621 310.385
201506 261.719 100.684 342.541
201509 304.446 100.392 399.623
201512 592.334 99.792 782.179
201603 670.839 100.470 879.867
201606 354.697 101.688 459.647
201609 499.084 101.861 645.658
201612 476.567 101.863 616.518
201703 500.649 102.862 641.379
201706 463.284 103.349 590.714
201709 486.143 104.136 615.179
201712 954.637 104.011 1,209.471
201803 785.136 105.290 982.645
201806 329.314 106.317 408.174
201809 1,317.639 106.507 1,630.259
201812 1,327.001 105.998 1,649.723
201903 1,777.176 107.251 2,183.575
201906 1,107.910 108.070 1,350.947
201909 1,796.548 108.329 2,185.393
201912 1,820.461 108.420 2,212.629
202003 2,561.139 108.902 3,099.105
202006 2,174.900 108.767 2,634.984
202009 2,806.474 109.815 3,367.726
202012 4,561.495 109.897 5,469.645
202103 4,240.528 111.754 5,000.257
202106 1,949.707 114.631 2,241.314
202109 2,135.835 115.734 2,431.883
202112 2,164.485 117.630 2,424.797
202203 3,304.301 121.301 3,589.651
202206 1,070.246 125.017 1,128.112
202209 2,222.339 125.227 2,338.574
202212 6,052.430 125.222 6,369.228
202303 7,115.933 127.348 7,363.383
202306 5,577.814 128.729 5,709.862
202309 10,088.956 129.860 10,237.867
202312 15,628.801 129.419 15,913.410
202403 34,254.206 131.776 34,254.206

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


International Business Machines  (BUE:IBM) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


International Business Machines Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of International Business Machines's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


International Business Machines (BUE:IBM) Business Description

Address
One New Orchard Road, Armonk, NY, USA, 10504
IBM looks to be a part of every aspect of an enterprise's IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients—which includes 95% of all Fortune 500. While IBM is a B2B company, IBM's outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.