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Morningstar

Underwhelming Results for IBM

We're maintaining our fair value estimate on the narrow-moat company.

After slightly adjusting some midterm assumptions, our fair value estimate remains $168 per share on this narrow economic moat name. Investor sentiment remains low on IBM and we think the company is trading at a modest discount (current price implies a fiscal 2018 adjusted price/earnings ratio of 10 times), which may appeal to risk-seeking technology investors.

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About the Author

Andrew Lange

Equity Analyst
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Andrew Lange is an equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He covers application software and IT services companies.

Lange joined Morningstar in 2007 as an associate equity analyst based in Auckland, New Zealand before moving to the Chicago office in 2012.

Lange holds bachelor’s degrees in economics and finance from the University of Otago in New Zealand.

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