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.
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