International Business Machines Corp (IBM) is now in the Overvalued zone, suggesting that its current forward PE ratio of 24.11 is considered Overvalued compared with the five-year average of 16.82. The fair price of International Business Machines Corp (IBM) is between 169.35 to 236.09 according to relative valuation method. Compared to the current price of 239.17 USD , International Business Machines Corp By Overvalued By 1.31%.

Relative Value

Fair Zone

169.35-236.09

Current Price：239.17

1.31%

Overvalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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International Business Machines Corp (IBM) has a current Price-to-Book (P/B) ratio of 9.76. Compared to its 3-year average P/B ratio of 7.52, the current P/B ratio is approximately 29.85% higher. Relative to its 5-year average P/B ratio of 6.85, the current P/B ratio is about 42.51% higher. International Business Machines Corp (IBM) has a Forward Free Cash Flow (FCF) yield of approximately 4.58%. Compared to its 3-year average FCF yield of 6.85%, the current FCF yield is approximately -33.20% lower. Relative to its 5-year average FCF yield of 7.97%, the current FCF yield is about -42.61% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for IBM competitors is 7.31, providing a benchmark for relative valuation. International Business Machines Corp Corp (IBM.N) exhibits a P/S ratio of --, which is -100% above the industry average. Given its robust revenue growth of 12.15%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of IBM increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of IBM in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is IBM currently overvalued or undervalued?

International Business Machines Corp (IBM) is now in the Overvalued zone, suggesting that its current forward PE ratio of 24.11 is considered Overvalued compared with the five-year average of 16.82. The fair price of International Business Machines Corp (IBM) is between 169.35 to 236.09 according to relative valuation method. Compared to the current price of 239.17 USD, International Business Machines Corp is Overvalued By 1.31%.

What is International Business Machines Corp (IBM) fair value?

IBM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. The fair price of International Business Machines Corp (IBM) is between 169.35 to 236.09 according to relative valuation method.

How does IBM's valuation metrics compare to the industry average?

The average P/S ratio for IBM's competitors is 7.31, providing a benchmark for relative valuation. International Business Machines Corp Corp (IBM) exhibits a P/S ratio of --, which is -100.00% above the industry average. Given its robust revenue growth of 12.15%, this premium appears unsustainable.

What is the current P/B ratio for International Business Machines Corp (IBM) as of Mar 02 2026?

As of Mar 02 2026, International Business Machines Corp (IBM) has a P/B ratio of 9.76. This indicates that the market values IBM at 9.76 times its book value.

What is the current FCF Yield for International Business Machines Corp (IBM) as of Mar 02 2026?

As of Mar 02 2026, International Business Machines Corp (IBM) has a FCF Yield of 4.58%. This means that for every dollar of International Business Machines Corp's market capitalization, the company generates 4.58 cents in free cash flow.

What is the current Forward P/E ratio for International Business Machines Corp (IBM) as of Mar 02 2026?

As of Mar 02 2026, International Business Machines Corp (IBM) has a Forward P/E ratio of 24.11. This means the market is willing to pay $24.11 for every dollar of International Business Machines Corp's expected earnings over the next 12 months.

What is the current Forward P/S ratio for International Business Machines Corp (IBM) as of Mar 02 2026?

As of Mar 02 2026, International Business Machines Corp (IBM) has a Forward P/S ratio of 3.92. This means the market is valuing IBM at $3.92 for every dollar of expected revenue over the next 12 months.

IBM Valuation