Today's price of $188 is well below the earnings justified value (PE=15), and the historical valuation over the past 20 years. Looking at the past 6 years:
Since the great recession of 2008/2009, the normal PE level is 13.8 vs. today's blended PE level of 11.9. Looking at dividends and growth estimates:
IBM is growing dividends at 17% per year (CAGR), and analysts are projecting 10% growth in EPS over the next 5 years.
I trimmed some DOV and JNJ over the past week to pay for this acquisition; both are large positions reaching overvaluation levels.