Discounted Cash Flow (DCF) Analysis Levered
International Business Machines Cor... (IBM)
$135.85
-1.09 (-0.80%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 79,139 | 79,590 | 77,147 | 73,621 | 57,351 | 53,168.71 | 49,291.41 | 45,696.87 | 42,364.45 | 39,275.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 16,724 | 15,247 | 14,770 | 18,197 | 12,796 | 11,321.05 | 10,495.47 | 9,730.10 | 9,020.53 | 8,362.72 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -3,773 | -3,964 | -2,907 | -3,230 | -2,768 | -2,417.05 | -2,240.78 | -2,077.38 | -1,925.89 | -1,785.44 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 12,951 | 11,283 | 11,863 | 14,967 | 10,028 | 8,904.01 | 8,254.69 | 7,652.72 | 7,094.65 | 6,577.28 |
Weighted Average Cost Of Capital
| Share price | $ 135.85 |
|---|---|
| Beta | 0.881 |
| Diluted Shares Outstanding | 904.64 |
| Cost of Debt | |
| Tax Rate | -18.71 |
| After-tax Cost of Debt | 2.09% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.777 |
| Total Debt | 55,139 |
| Total Equity | 122,895.48 |
| Total Capital | 178,034.48 |
| Debt Weighting | 30.97 |
| Equity Weighting | 69.03 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 79,139 | 79,590 | 77,147 | 73,621 | 57,351 | 53,168.71 | 49,291.41 | 45,696.87 | 42,364.45 | 39,275.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 16,724 | 15,247 | 14,770 | 18,197 | 12,796 | 11,321.05 | 10,495.47 | 9,730.10 | 9,020.53 | 8,362.72 |
| Capital Expenditure | -3,773 | -3,964 | -2,907 | -3,230 | -2,768 | -2,417.05 | -2,240.78 | -2,077.38 | -1,925.89 | -1,785.44 |
| Free Cash Flow | 12,951 | 11,283 | 11,863 | 14,967 | 10,028 | 8,904.01 | 8,254.69 | 7,652.72 | 7,094.65 | 6,577.28 |
| WACC | ||||||||||
| PV LFCF | 6,269.87 | 5,482.59 | 4,794.17 | 4,192.19 | 3,665.79 | |||||
| SUM PV LFCF | 32,689.71 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.02 |
| Free cash flow (t + 1) | 6,708.82 |
| Terminal Value | 166,886.12 |
| Present Value of Terminal Value | 124,589.43 |
Intrinsic Value
| Enterprise Value | 157,279.14 |
|---|---|
| Net Debt | 48,489 |
| Equity Value | 108,790.14 |
| Shares Outstanding | 904.64 |
| Equity Value Per Share | 120.26 |