A book by Robert Prechter highlights another important valuation measure that analysts are ignoring .
That measure of ultimate value is the one that Warren Buffet used to make his fortune .
It is simply how much in assets are you buying for each share price , he is well know for buying at or close to book value .
IBM using that measure shows that you would be paying at least 12 times the actual value since it has a PB after the release of its Q4 earnings last week of over 12 .
That figure though is misleading due to its large Debt of almost $34B .
If that debt is factored in then the Price to book is astronomical because that debt puts IBM tangible book value at least minus $10 pershare . I was always taught that if you divide by zero you get infinity but what is the result when you divide by a negative number ??