International Business Machines Corporation (IBM) Fair Value & Analysis
Technology · US · Market cap $204B
International Business Machines Corporation
IBM · US
Fair value as of: Aug 6, 2026
From 24 valuation models · updated yesterday
Fair value updated Aug 6, 2026, revised from $146.77 to $143.90 (−2.0%) since Jul 16, 2026. Share price −23.7% over the past month.
A solid business, but screening 38% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case ($208.39). The favourable scenario is already priced in.
- Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
- A fairly wide model range ($89.31 to $208.39) 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 6, 2026.
How to read this chart
60‑month range $97.62 – $329.23 · fair‑value band $89.31 – $208.39 · the $233.43 price screens above the $143.90 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 6, 2026.
Analysis
International Business Machines Corporation (IBM) currently trades at $233.43, while our model-based Fair Value estimate is $143.90, implying the stock looks roughly 38.4% overvalued today. We read business quality at 60/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, International Business Machines Corporation 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 6, 2026
Our scenario range runs from $89.31 (bear case) to $208.39 (bull case); at $233.43, the current price sits above 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 30% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -1% fair-value upside, at -38%, IBM screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.
All 24 models by family
Widest divergence: Growth Earnings ($170.86) versus Asset-Based ($23.27). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 6, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 61 · Market factors (momentum, volatility) 39
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.
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 Corporation 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.
IBM screens 38% overvalued. Compare with Accenture plc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Kyndryl Holdings Inc (KD) (Q1 2027) Earnings Call Highlights: AI-Led Growth Offsets IBM Headwinds
- IBM Maximo Application Suite Achieves FedRAMP Moderate Authorization, Expanding Secure Asset Management Options for Federal Agencies
Peer Group
Information Technology Services · 482 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
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: 86/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 6, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Accenture plc ACNN | 2,460 MXN | 250.95 MXN | -90% |
| Infosys Limited INFY | ₹1,156 | ₹1,457 | +26% |
| HCL Technologies Limited HCLTECH | ₹1,204 | ₹1,230 | +2% |
| Wipro Limited WIPRO | ₹178.43 | ₹226.81 | +27% |
| Tech Mahindra Limited TECHM | ₹1,455 | ₹1,086 | -25% |
| Samsung SDS Co 018260 | 199,300 KRW | 196,390 KRW | -1% |
| Persistent Systems Limited PERSISTENT | ₹5,059 | ₹2,364 | -53% |
| Hyundai Autoever Corporation 307950 | 393,000 KRW | 133,088 KRW | -66% |
| Coforge Limited COFORGE | ₹1,541 | ₹702.84 | -54% |
| LG CNS Co 064400 | 71,100 KRW | 116,932 KRW | +64% |
Compare International Business Machines Corporation with another stock
Price, fair value, quality and upside side by side.
Explore undervalued stocks
More undervalued Technology stocks →
Frequently asked questions
Is International Business Machines Corporation (IBM) overvalued or undervalued?
What is the fair value of IBM?
What is the quality score of IBM?
What is the revenue of International Business Machines Corporation (IBM)?
What is the net profit margin of IBM?
Does International Business Machines Corporation pay a dividend?
How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
Track International Business Machines Corporation and try Pro for 14 days
One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.
Zero risk: nothing is ever charged. After 14 days you decide whether to stay.