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International Business Machines Corporation
IBM: NYSELowest reading is at 23 out of 100. All scores are out of 100.
About The Company
CEO
Mr. Arvind Krishna
Market Cap
212.46 Billion USD
Sector
Technology
Website
https://www.ibm.comLast Update
26/09/2026, 10:17:16
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.
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Strongest readings
- ✔Dividend cover is strong (dividend score 71 out of 100)
Weakest readings
- ✘Revenue is growing at 3.93% per year while free cashflow is falling
- ✘The current price sits above estimated fair value (margin of safety -71.16%)
- ✘Earnings and cashflow growth is weak (growth score 23 out of 100)
- ✘Debt is high at 1.68 times equity
- ✘Share count has been rising at 0.92% per year
Key Figures
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✘ | Price / earnings (TTM) | 19.65x | 19.60x | |
| ✘ | Margin of safety (DCF) | -71.16% | 17.95% | |
| ✘ | Revenue growth (5y average) | 3.93% | 10.97% | |
| ✔ | Dividend yield (TTM) | 2.97% | 1.85% | |
| ✘ | Share count, per year | 0.92% | 0.00% | |
| ✘ | Return on capital employed | 0.00% | 10.00% |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
Valuation
34 / 100Priced above the market on most measures.
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✘ | Price / earnings | 19.65x | 19.60x | |
| ✔ | Free cashflow yield | 6.49% | 4.70% | |
| ✔ | Price / earnings growth | 0.27x | 1.50x | |
| Price / book | 6.15x | — | ||
| ✘ | Margin of safety | -71.16% | 17.95% |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
- ✘Estimated intrinsic value of 65.04 USD is below the current price of 225.51 USD
Desired Margin Of Safety
0%
▼
Tip: Set your desired Margin Of Safety
Free Cash Flow Type
Annual Cashflow Growth
0%
Discount Rate
0%
Estimated Fair Value: 222.6 USD ✘
Current Price: 225.5 USD
How Does This Work?
Show Advanced Options
This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated fair value for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel for the impact this has on longterm investment returns and find a margin of safety you are comfortable with.
Growth
23 / 100Growing more slowly than the market on most measures.
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✘ | Revenue growth | 3.93% | 10.97% | |
| ✘ | Earnings growth | 2.07% | 14.48% | |
| ✘ | Cashflow growth | -2.38% | 12.35% |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
- ✔Revenue growth has improved this year (7.90% against a five year average of 3.93%)
- ✔Earnings growth has improved this year (82.13% against a five year average of 2.07%)
- ✔Free cashflow growth has improved this year
- ✘Revenue is growing at 3.93% per year while free cashflow is falling at 2.38% per year
Health
48 / 100Balance sheet is stretched on several measures.
Measured on Leverage and capital, Funding and liquidity, Earnings quality.
| Status | Metric | Value | Reading | Threshold |
|---|---|---|---|---|
| Altman-Z score | N/A | 3.00 | ||
| ✔ | Piotroski score | 6.00 | 5.00 | |
| ✘ | Debt / equity | 1.68x | 0.80x | |
| ✘ | Current ratio | 0.96x | 1.00x | |
| Interest coverage | N/A | 2.50x | ||
| ✔ | Free cashflow / debt | 0.22x | 0.15x | |
| ✔ | Debt / capital | 0.63x | 1.00x |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
Dividend
71 / 100Covered by both earnings and cashflow.
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✔ | Dividend yield | 2.97% | 1.85% | |
| ✔ | Dividend growth | 1.76% | 0.00% | |
| ✘ | Payout ratio (earnings) | 58.83% | 40.00% | |
| ✔ | Payout ratio (cashflow) | 45.75% | 65.00% | |
| ✔ | Worst year, last 5 years | 0.59% | -2.00% |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
- ✔Dividend growth has been accelerating recently
Management
54 / 100Returns on capital are at or above the market.
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✔ | Return on equity | 32.45% | 15.00% | |
| ✘ | Return on capital employed | 0.00% | 10.00% | |
| Return on assets | 6.97% | — | ||
| Free cashflow return on capital | 10.69% | — | ||
| Return on capital, 5y change | N/A | 0.00% | ||
| ✘ | Share count, per year | 0.92% | 0.00% | |
| ✘ | Share count, recent | 1.06% | 0.00% | |
| Realized buyback return | N/A | 0.00% | ||
| ✔ | Goodwill erosion / equity | 0.00% | 2.00% | |
| Price volatility, 5 year | 23.81% | — |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
- ✔New shares were issued while the value score was 34 out of 100
- ✘Return on equity of 32.45% is driven by debt rather than operations, because return on capital employed is only 0.00%
Analysts
not enough data| Status | Metric | Value | Reading | Neutral |
|---|---|---|---|---|
| Analyst opinion score | N/A | 50 |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
Financial History
Annual figures across the full reporting history we hold.
Market Peers
IBM
SEC Filings
Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.
See 35+ Years Annual ReportsOther Information
Company Name
International Business Machines Corporation
Currency
USD
Beta
0.708
Vol Avg
8341746
Ceo
Mr. Arvind Krishna
Cik
0000051143
Cusip
Exchange
NYSE
Full Time Employees
264300
Industry
Information Technology Services
Sector
Technology
Ipo Date
Address
One New Orchard Road
City
Armonk
State
NY
Country
United States
Zip
10504
Phone
914 499 1900
Analysis Last Updated
26/09/2026, 10:17:16
Financial data compiled from SEC EDGAR filings and Yahoo Finance.