Computing Fair Value for IBM
Regular readers of my columns know I like to use each company's past trading history to evaluate where the current price lies within the valuation spectrum. IBM (IBM) had a big run since June to close Thursday just 2.3% under its all-time high. Revenues and earnings have been hitting new records.
If IBM matches second-half and 2013 estimates they now trade for 13.6x this year's and 12.4x next year's EPS. For a high-quality growth company with more than $100 billion in annual sales, those are not extended valuations....311 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
