Stock AnalizInternational Business Machines Corp. IBM
Computer Manufacturing · data as of November 13, 2026
International Business Machines Corp. (IBM) is a technology company listed in the US with a market value of about $233.6B. In the twelve months to September 30, 2026 it had revenue of $69.9B and net income of $11.2B, a net margin of 16.0%.
Its overall Stock Analiz score is 3.0 out of 5 (average). The strongest part is shareholder returns (4/5); the weakest is financial health (2/5).
Key numbers: a P/E of 21.0, a price to free cash flow of 15.9, 5-year revenue growth of 4% a year, a 5-year average ROIC of 8%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 30% below the current price.
Score: 3.0 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Profit margin improving
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
- Profitable 5 years in a row
Checks not passed
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- 5-year revenue growth above 8% a year
- 5-year average ROIC above 12%
- More cash than debt, or low debt to equity
- Debt below 3 years of free cash flow
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $69.9B | $67.5B | $62.8B | $61.9B | $60.5B | $57.4B | $55.2B | $57.7B | $79.6B | $79.1B | $79.9B |
| Net income | $11.2B | $10.6B | $6.0B | $7.5B | $1.6B | $5.7B | $5.6B | $9.4B | $8.7B | $5.8B | $11.9B |
| Free cash flow | $14.7B | $12.1B | $12.4B | $12.7B | $9.1B | $10.7B | $15.6B | $12.5B | $11.9B | $13.5B | $13.5B |
| EPS (diluted) | $11.75 | $11.17 | $6.43 | $8.14 | $1.80 | $6.35 | $6.23 | $10.56 | $9.52 | $6.14 | $12.38 |
| Net margin | 16.0% | 15.7% | 9.6% | 12.1% | 2.7% | 10.0% | 10.1% | 16.3% | 11.0% | 7.3% | 14.9% |
| ROIC | — | 10.0% | 6.9% | 10.8% | 2.5% | 7.9% | 3.5% | 9.5% | 14.4% | 9.7% | 21.1% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 23 analysts is $259.85, 5% above the current price; targets range from $174.00 to $300.00; the consensus rating is “Buy”; expected EPS is $12.42 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is International Business Machines’s P/E ratio?
About 21.0, based on the last twelve months of diluted earnings per share (forward P/E about 18.5).
Is International Business Machines stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 30% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does International Business Machines pay a dividend?
Yes. The dividend yield is about 2.72%, and it has paid dividends for 10 years in our data.
Is International Business Machines a good stock to buy?
We do not give buy or sell advice. International Business Machines scores 3.0 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.