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The consensus of 26 leading analysts reporting to Capital IQ forecast International Business Machines’ long-term earnings growth at 11%. International Business Machines has medium long-term debt at 49% of capital. International Business Machines is currently trading at a P/E of 14.4, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, International Business Machines’ True Worth valuation would be $375.15 at the end of 2017, which would be a 12.9% annual rate of return from the current price, including assumed dividends.
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