How to buy IBM (IBM) shares in Australia
Learn how to easily invest in IBM shares.
International Business Machines is an information technology services business with stocks listed in the US. IBM shares (IBM) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$160.28 – an increase of 1.08% over the previous week. Here's how to invest if you're based in Australia.
How to buy shares in IBM
- Compare share trading platforms. To buy shares in a company listed in the US from Australia you'll need to find a trading platform that offers access to US stock markets. Look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, which will typically include your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for IBM. Find the share by name or ticker symbol: IBM. Research its history to confirm it's a solid investment that matches your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until IBM reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying using consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$160.28, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of IBM, depending on your broker.
- Check in on your investment. Congratulations, you own a part of IBM. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights.
What's in this guide?
IBM stock price (NYSE:IBM)Use our graph to track the performance of IBM stocks over time.
Have IBM's shares ever split?
IBM's shares were split on a 1046:1000 basis on 4 November 2021. So if you had owned 1000 shares the day before the split, the next day you would own 1046 shares. This wouldn't directly have changed the overall worth of your IBM shares – just the quantity. However, indirectly, the new 4.4% lower share price could have impacted the market appetite for IBM shares which in turn could have impacted IBM's share price.
IBM shares at a glance
|52-week range||US$117.3755 - US$162.79|
|50-day moving average||US$146.2504|
|200-day moving average||US$137.0128|
|Dividend yield||US$6.62 (4.12%)|
|Earnings per share (TTM)||US$7.75|
IBM price performance over time
|1 week (2023-11-30)||1.08%|
|1 month (2023-11-07)||7.69%|
|3 months (2023-09-07)||8.65%|
|6 months (2023-06-07)||19.27%|
|1 year (2022-12-07)||8.83%|
|2 years (2021-12-07)||31.83%|
|3 years (2020-12-07)||34.44%|
|5 years (2018-12-07)||40.61%|
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Is it a good time to buy IBM stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Is IBM under- or over-valued?
Valuing IBM stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of IBM's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
IBM's P/E ratio
IBM's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 21x. In other words, IBM shares trade at around 21x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
IBM's PEG ratio
IBM's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.4288. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into IBM's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
IBM's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$13.7 billion (£10.9 billion).
The EBITDA is a measure of a IBM's overall financial performance and is widely used to measure stock profitability.
IBM share price volatility
Over the last 12 months, IBM's shares have ranged in value from as little as US$117.3755 up to US$162.79. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (NYSE average) beta is 1, while IBM's is 0.772. This would suggest that IBM's shares are less volatile than average (for this exchange).
|Revenue TTM||US$61.2 billion|
|Operating margin TTM||14.51%|
|Gross profit TTM||US$32.7 billion|
|Return on assets TTM||4.55%|
|Return on equity TTM||32.78%|
|Market capitalisation||US$147.1 billion|
TTM: trailing 12 months
IBM share dividends
Dividend payout ratio: 70.99% of net profits
Recently IBM has paid out, on average, around 70.99% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.12% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), IBM shareholders could enjoy a 4.12% return on their shares, in the form of dividend payments. In IBM's case, that would currently equate to about $6.62 per share.
IBM's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
IBM's most recent dividend payout was on 9 December 2023. The latest dividend was paid out to all shareholders who bought their shares by 9 November 2023 (the "ex-dividend date").
IBM's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like IBM.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
IBM's total ESG risk score
Total ESG risk: 17.23
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and IBM's overall score of 17.23 (as at 01/01/2019) is excellent – landing it in it in the 14th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like IBM is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
IBM's environmental score
Environmental score: 0.91/100
IBM's environmental score of 0.91 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that IBM is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
IBM's social score
Social score: 7.08/100
IBM's social score of 7.08 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that IBM is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
IBM's governance score
Governance score: 5.75/100
IBM's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that IBM is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
IBM's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. IBM scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that IBM has, for the most part, managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||17.23|
|Total ESG percentile||14.12|
|Environmental score percentile||1|
|Social score percentile||1|
|Governance score percentile||1|
|Level of controversy||2|
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. The Software segment offers hybrid cloud platform and software solutions; software for business automation, AIOps and management, integration, and application servers; data and artificial intelligence solutions; and security software and services for threat, data, and identity. This segment also provides transaction processing software that supports clients' mission-critical and on-premise workloads in banking, airlines, and retail industries. The Consulting segment offers business transformation services, including strategy, business process design and operations, data and analytics, and system integration services; technology consulting services; and application and cloud platform services. The Infrastructure segment provides on-premises and cloud-based server and storage solutions for its clients' mission-critical and regulated workloads; and support services and solutions for hybrid cloud infrastructure, as well as remanufacturing and remarketing services for used equipment. The Financing segment offers lease, installment payment, loan financing, and short-term working capital financing services. The company has collaboration agreement with Siemens Digital Industri Software to develop a combined software solution. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.
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