` Comparison: IBM vs MSFT - Alpha Spread

IBM
vs
MSFT

Over the past 12 months, IBM has outperformed MSFT, delivering a return of +3% compared to the MSFT's +3% growth.

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IBM
MSFT
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Valuation Comparison

IBM Intrinsic Value
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MSFT Intrinsic Value
387.73 USD
Overvaluation 8%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Relative Value Wall St Target
International Business Machines Corp
XBER:IBM
259.25 EUR
Microsoft Corp
NASDAQ:MSFT
423.37 USD
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
IBM, MSFT

IBM
MSFT
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
International Business Machines Corp
Revenue
Microsoft Corp
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
IBM, MSFT

IBM
MSFT
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
International Business Machines Corp
XBER:IBM
Microsoft Corp
NASDAQ:MSFT
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What is Free Cash Flow?

Gross Margin

IBM
58.2%
MSFT
68.6%

Operating Margin

IBM
15.9%
MSFT
46.7%

Net Margin

IBM
15.7%
MSFT
39%

FCF Margin

IBM
17.1%
MSFT
25.3%

ROE

IBM
35.3%
MSFT
34.4%

ROA

IBM
7.3%
MSFT
19.9%

ROIC

IBM
9.7%
MSFT
23.7%

ROCE

IBM
9.9%
MSFT
29.7%

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
IBM, MSFT

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Performance Gap
IBM, MSFT

Performance Gap Between IBM and MSFT
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Performance By Year
IBM, MSFT

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IBM
MSFT
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