IBM Valuation

International Business Machines Corp

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281.960

-2.75(-0.966%)1D

Overview
Forecast
Valuation
Earnings

IBM Relative Valuation

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. If the market price exceeds this fair value range, IBM is overvalued; if below, it's undervalued.

Historical Valuation

International Business Machines Corp (IBM) is now in the Fair zone, suggesting that its current forward PE ratio of 25.53 is considered Fairly compared with the five-year average of 15.85. The fair price of International Business Machines Corp (IBM) is between 260.09 to 324.94 according to relative valuation methord.

Relative Value

Fair Zone

260.09-324.94

Current Price：281.48

Fair

Trailing

Forward

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

9.75

P/B

Median3y

6.93

Median5y

6.43

4.76

FCF Yield

Median3y

7.15

Median5y

8.83

Competitors Valuation Multiple

The average P/S ratio for IBM's competitors is 9.53, providing a benchmark for relative valuation. International Business Machines Corp Corp (IBM) exhibits a P/S ratio of 3.94, which is -58.64% above the industry average. Given its robust revenue growth of 0.55%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

IBM.N

International Business Machines Corp

3.94

Average P/S: 9.53

0.55%