Morningstar Quicktake® Report Snapshot Stock Grades Financials Stock Performance Stock Valuation Industry Snapshot Fund Ownership SEC Documents Who's Buying/Selling Enter ticker IBM IBM Performance more Growth of $10,000 07-17-06 Total Return% 2003 2004 2005 YTD Stock 20.5 7.2 -15.8 -9.8 +/- Industry -19.8 -11.4 -19.2 1.3 +/- -5.9 -1.8 -18.8 -8.7 Key Stats Last Close (07-17-06) $73.70 Market Cap $Mil 114,264 Sales $Mil 88,885 Morningstar Style Box Large Value Industry Computer Equipment Sector Hardware Stock Type Slow Growth Morningstar Stock Grades Growth D Profitability A Financial Health B Valuation more 07-17-06 Stock Industry S&P 500 Price/Earnings 14.3 22.3 19.9 Forward P/E 12.6 18.7 16.4 Price/Book 3.5 4.4 3.9 Price/Cash Flow 7.7 14.0 13.8 Price/Sales 1.3 1.6 2.7 Dividend Yield % 1.2 0.6 1.9 S&P 500 data through 07-12-06 Growth more 07-12-06 1 Year% 3 Year% S&P 500 Sales -5.4 3.9 11.9 Net Income 6.1 30.4 19.6 EPS 11.2 33.2 18.4 Equity/Share 9.5 15.7 12.9 Dividends 11.4 10.1 11.8 S&P 500 data - 3 Year% Profitability more 12-31-05 Stock Industry S&P 500 ROA % 8.0 7.8 7.8 ROE % 25.2 24.6 20.1 Net Margin % 9.3 7.0 14.2 Asset Turnover 0.9 1.2 0.8 Fin Leverage 3.1 3.0 4.9 Sales/Employee $Thousands 242.6 --- --- Stock uses trailing 12 months. Industry and S&P 500 use fiscal year-end. Fund Ownership more % Shares Held % Fund Assets Star Rating American Funds Washington Mutual A 1.02 1.68 Vanguard 500 Index 0.97 1.15 American Funds Invmt Co of Amer A 0.64 1.01 American Funds American Balanced A 0.64 1.54 Vanguard Institutional Index 0.51 1.15 Operations What Does This Company Do? View industry peers Address One New Orchard Road Armonk, NY 10504 Phone 914 499-1900 Website http://www.ibm.com Direct Investment Yes Dividend Reinvestment Yes Employees 366,345 © Copyright 2006 Morningstar, Inc. All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. Past performance is no guarantee of future results. Returns will vary and shares may be worth more or less than their original cost when sold.