IBM Corporation is considered as having uneven or volatile performance. Go to the website at www.IBM.com to investigate this claim. Go to the bottom of the page and select the “Information For – Investors” link. Using the “Investor Relations” link on the right of the page, select the “financial information” link, then the “financial snapshot” link from the drop-down menu.

Assuming that IBM has a historical P/E ratio of 18, what is the current P/E ratio, and how does compare to the historical average? What does this tell us about the relative valuation of IBM in today’s market?

Next, go to “Stock Chart” and describe the one-year stock chart. How has IBM stock been moving and performing? Taken in consideration of the P/E ratio, would you buy IBM stock for your retirement investment account?