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IBM (International Business Machines) Cyclically Adjusted Price-to-FCF : 18.58 (As of Jul. 06, 2025)


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

As of today (2025-07-06), International Business Machines's current share price is $291.97. International Business Machines's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 was $15.71. International Business Machines's Cyclically Adjusted Price-to-FCF for today is 18.58.

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

IBM' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 6.57   Med: 9.84   Max: 18.58
Current: 18.58

During the past years, International Business Machines's highest Cyclically Adjusted Price-to-FCF was 18.58. The lowest was 6.57. And the median was 9.84.

IBM's Cyclically Adjusted Price-to-FCF is ranked better than
68.88% of 707 companies
in the Software industry
Industry Median: 31.57 vs IBM: 18.58

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. 2025 was $4.205. 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 $15.71 for the trailing ten years ended in Mar. 2025.

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 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.37 8.94 9.28 10.61 14.23

International Business Machines Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 12.08 10.99 14.09 14.23 15.83

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.


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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
=291.97/15.71
=18.58

* 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. 2025 is calculated as:

For example, International Business Machines's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2025 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=4.205/134.9266*134.9266
=4.205

Current CPI (Mar. 2025) = 134.9266.

International Business Machines Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201506 2.880 100.684 3.859
201509 3.238 100.392 4.352
201512 4.576 99.792 6.187
201603 4.594 100.470 6.170
201606 2.537 101.688 3.366
201609 3.346 101.861 4.432
201612 3.006 101.863 3.982
201703 3.247 102.862 4.259
201706 2.810 103.349 3.669
201709 2.774 104.136 3.594
201712 4.999 104.011 6.485
201803 3.897 105.290 4.994
201806 1.320 106.317 1.675
201809 3.581 106.507 4.537
201812 3.519 105.998 4.479
201903 4.546 107.251 5.719
201906 2.480 108.070 3.096
201909 3.212 108.329 4.001
201912 3.046 108.420 3.791
202003 4.126 108.902 5.112
202006 3.177 108.767 3.941
202009 3.780 109.815 4.644
202012 5.605 109.897 6.882
202103 4.708 111.754 5.684
202106 2.058 114.631 2.422
202109 2.184 115.734 2.546
202112 2.143 117.630 2.458
202203 3.077 121.301 3.423
202206 0.889 125.017 0.959
202209 1.599 125.227 1.723
202212 3.610 125.222 3.890
202303 3.602 127.348 3.816
202306 2.324 128.729 2.436
202309 2.883 129.860 2.995
202312 4.329 129.419 4.513
202403 4.066 131.776 4.163
202406 1.736 132.554 1.767
202409 2.660 133.029 2.698
202412 4.123 133.157 4.178
202503 4.205 134.927 4.205

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  (NYSE: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 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 300,000 people. The company has a robust roster of business partners to service its clients, which include 95% of all Fortune 500 companies. Primary products include its mainframes, Red Hat software, transaction processing software, and IT consulting.
Executives
David N Farr director
Alfred W Zollar director C/O LOTUS SOFTWARE, ONE ROGER STREET, CAMBRIDGE MA 02142
Nickle Jaclyn Lamoreaux officer: Senior Vice President IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Michelle H Browdy officer: Senior Vice President IBM CORPORATION, ONE NEW ORCHARD ROAD, ARMONK NY 10504-1722
Michael Miebach director 2000 PURCHASE STREET, PURCHASE NY 10577
James J Kavanaugh officer: Vice President and Controller IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Nicolas A. Fehring officer: VP, Controller ONE NEW ORCHARD ROAD, ARMONK NY 10504
Del Bene Robert F officer: VP, Controller IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Michelle J Howard director C/O SECRETARY'S OFFICE, IBM CORPORATION, ARMONK NY 10504
Gary D Cohn officer: Vice Chairman 812 PARK AVENUE, 7-8A, NEW YORK NY 10021
James M Whitehurst officer: President IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Alex Gorsky director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Andrew N Liveris director 2211 H.H. DOW WAY, MIDLAND MI 48674
Joseph Swedish director WELLPOINT, INC., 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Frederick H Waddell director 50 S. LA SALLE ST., CHICAGO IL 60675