International Business Machines (IBM) Fair Value & Analysis
Technology · US · Market cap $204B · ISIN US4592001014
What is International Business Machines really worth?
International Business Machines
IBM · US
A solid business, but trading 34% above our fair value of $175.76.
Strengths
Risks
For context
Fair value as of: Aug 30, 2026
From 24 valuation models · updated 6 days ago
Share price −0.2% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.
- A fairly wide model range ($110.74 to $272.63) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.
How to read this chart
60‑month range $97.62 – $329.23 · fair‑value band $110.74 – $272.63 · the $234.71 price screens above the $175.76 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.
Analysis
International Business Machines (IBM) currently trades at $234.71, while our model-based Fair Value estimate is $175.76, implying the stock looks roughly 33.5% overvalued today. The Quality Score stands at 67/100 (solid quality), in the Technology sector. Bull case: the Growth Earnings group reads highest at a median of $236.50 per share, and 3 of the 24 models we run sit above the $234.71 price. Bear case: the Asset-Based group reads lowest at $23.27, and 21 of the 24 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, International Business Machines generated revenue of $68.9B at a net margin of 15.6%. Revenue grew 9.5% year over year. It earns a return on equity of 35.8%. Net debt stands at $53.5B. Fundamentals as of Aug 30, 2026
Our scenario range runs from $110.74 (bear case) to $272.63 (bull case); at $234.71, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 29% below its 52-week high and 11% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at 69% fair-value upside, at −25%, IBM screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $1.16 per share, which is 0.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 24 models by family
Widest divergence: Growth Earnings ($236.50) versus Asset-Based ($23.27). Highest evidence: FCF DCF (78).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 61 · Market factors (momentum, volatility) 35
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments.
Full company description
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment delivers strategy and technology services and intelligent operations, providing business transformation, technology implementation, managed services, application modernization, and AI-powered solutions. The Infrastructure segment provides on-premises and cloud-based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. Its Financing segment offers client and commercial financing, and facilitates IBM clients' acquisition of hardware, software, and services. It has strategic partnerships with various companies, including hyperscalers, service providers, global system integrators, and software and hardware vendors that include Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. Additionally, the company operate a data streaming platform. The company has a strategic collaboration with Arm Holdings plc for the development of new dual-architecture hardware that helps enterprises run future AI and data intensive workloads; and strategic partnership with three.ws to advance ai-powered 3d agent technology. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
International Business Machines reported revenue of $67.5B in FY2025 versus $57.4B in FY2021, a compound +4.2%/yr. Reported net income was $10.6B in FY2025, compounding +16.5%/yr from FY2021.
of which total revenue −3.1 % · buybacks/dilution +0.6 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
IBM screens 34% overvalued. Compare with Accenture plc →
Peer Group
Information Technology Services · 486 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Information Technology Services median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 78/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Accenture plc ACN | $189.61 | $334.27 | +76% |
| Tata Consultancy Services Limited TCS | ₹2,302 | ₹3,473 | +51% |
| Infosys Limited INFY | ₹1,156 | ₹1,958 | +69% |
| HCL Technologies Limited HCLTECH | ₹1,282 | ₹1,722 | +34% |
| Fiserv, Inc FI | C$5.13 | C$8.07 | +57% |
| Wipro Limited WIT | $1.83 | $3.51 | +92% |
| Fidelity National Information Services, Inc FIS | $41.34 | $19.28 | −53% |
| Cognizant Technology Solutions Corporation CTSH | $64.04 | $132.01 | +106% |
| Capgemini SE CAP | €109.45 | €222.79 | +104% |
| CDW Corporation CDW | $153.92 | $179.36 | +17% |
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