IBM
 
Buylyst Valuation
$218
Market Price
$128.7
Upside
73%
 

Target Price based on these Assumptions

Sustainable Free Cash Flow
$10,061 Million
Long-Term Discount Rate
5%

Sustainable Free Cash Flow Calculation

Historical Numbers

Cash Flow Items ($mn) Sustainable Level
Revenue 79,139
-

Cost of goods sold

42,913
-

R&D and Cost of labor

5,787
-

Selling, general, and administrative costs

Selling & Admin. Costs

20,107
-

Other

-1,682
+

Depreciation and amortization

Depreciation 

4,541
=

Earnings before interest, taxes, depreciation and amortization (EBITDA)

EBITDA

16,555
-

Maintenance capital expenditure

Maintenance Cap-Ex

3,229
=

Unlevered cash flow

13,326
-

Increases in working capital

Increases in working cap.

0
-

Debt service charges

1,208
-

Cash taxes

1,597
=

Discretionary cash flow

10,521
POSSIBLY WIDENING THE MOAT:
-

Growth capital expenditure

Growth Cap-Ex

460
-

Cash spent on acquisitions

Acquisitions

496
-

Other

0
POSSIBLE SHENANIGANS:
-

Dividends

5,506
-

Share Buybacks

4,340
=

FREE CASH FLOW

10,061

* Click on the orange dot above to read additional notes on the items

Last 12 months ending 03/31/2019.

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