# Professor Aswath Damodaran explains why he believes IBM stock is a "value trap"

1 Faculty News December 30, 2015 ![CNBC logo](/sites/default/files/styles/246w/public/assets/images/uat_027305.jpg?itok=Ipx0jiaQ)>

Excerpt from [CNBC](http://video.cnbc.com/gallery/?video=3000470547&play=1) -- "... I look at an IBM and it's a stock that looks cheap, that's looked cheap for a while and it keeps looking cheap. And unlike the other tech names, for instance Apple, I look at IBM and I can't see anything happening in the business that's exciting. So if it makes it back, it'll be purely as a dividend play. So to me, it's a stock that will continue to look cheap."

[Watch the video](http://video.cnbc.com/gallery/?video=3000470547&play=1)

Additional coverage appeared on [Yahoo Finance](http://finance.yahoo.com/video/3-value-traps-asking-trouble-172000969.html).