International Business Machines Corp (IBMB34) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of International Business Machines Corp BRL 678, price BRL 1,159, upside -41.5%, quality 60 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 28, 2026.
How to read this chart
60‑month range R$524.21 – R$1,695 · fair‑value band R$437.32 – R$942.74 · the R$1,159 price screens above the R$677.53 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 28, 2026.
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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.
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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.
Stock analysis
International Business Machines Corp (IBMB34) currently trades at R$1,159, while our model-based Fair Value estimate is R$677.53, 41.5% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of R$1,236 per share, and 3 of the 24 models we run sit above the R$1,159 price.
Bear case: the Asset-Based group reads lowest at R$121.65, and 21 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: R$437.32 (bear) to R$942.74 (bull), the price of R$1,159 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 60/100 (solid quality), in the Technology sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
International Business Machines Corp 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.
Key figures
Market cap R$1.1T (≈ $207B) · P/E ratio 19.8 · P/S ratio 3.10 · EPS (TTM) R$58.54 · Dividend yield 0.6% · Net margin 15.7% · Return on equity 35.8% · Return on assets (EBIT) 4.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 55 out of 100 (medium confidence).
What moves the price
The share trades about 32% below its 52-week high and 12% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at 55% fair-value upside, at −42%, IBMB34 screens richer than that median.
Fair Value models
Bear R$437.32Fair Value R$677.53Bull R$942.74
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (R$39.18 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
+7.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−1.7%
Start year 2020 (pandemic)
Revenue growth 7 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−2.3%
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’21
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’25
What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+13.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+12.6%
Dividend (yield on the price)0.6%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9% → 15%
2025 sits 74% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
⚠ Revenue per share shrinking 4.9%/yr over ~5Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+14.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in USD, USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +11.5% a year for the price and +1.7% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Compare International Business Machines Corp with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Information Technology Services · 458 stocks
Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score60 · Above median
Fair Value upside−17.3% · Below median
Profitability
Return on equity (TTM)35.8% · Top 25%
Return on assets5.4% · Above median
Net margin (TTM)15.6% · Top 25%
Operating margin (TTM)13.8% · Top 25%
Growth and dividend
Revenue growth9.5% · Above median
Dividend yield (TTM)0.6% · Bottom 25%
Balance sheet
Debt / equity1.68× · Highest 25%
Valuation Multiplesvs Information Technology Services median · lower = cheaper
P/E (TTM)19.8× · Pricier than median
P/B6.47× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "International Business Machines Corp Fair Value". https://www.fairvalue-calculator.com/stock/IBMB34
Frequently asked questions
Is International Business Machines Corp (IBMB34) overvalued or undervalued?
As of Sep 28, 2026, our model estimates a fair value of R$677.53 versus a price of R$1,159, about −42% upside (overvalued).
What is the fair value of IBMB34?
Our model-based fair value for International Business Machines Corp is R$677.53 (as of Sep 28, 2026), built from audited fundamentals. The current price: R$1,159.
What is the quality score of IBMB34?
International Business Machines Corp has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for International Business Machines Corp (IBMB34)?
Our model-based price target is the fair value of R$677.53 (as of Sep 28, 2026) from 24 valuation models. Cautious scenario R$437.32, optimistic scenario R$942.74. It is a calculation from audited fundamentals, not an analyst target.
What is the International Business Machines Corp stock forecast for 2026?
Our models put fair value at R$677.53, about −42% upside versus a price of R$1,159 (overvalued). Cautious scenario R$437.32, optimistic scenario R$942.74. The calculation is refreshed regularly with new filings.
What is the revenue of International Business Machines Corp (IBMB34)?
International Business Machines Corp reported trailing-twelve-month revenue of about $68.9B (latest available figure, as of Sep 28, 2026).
Does International Business Machines Corp pay a dividend?
International Business Machines Corp currently shows a dividend yield of about 0.58% relative to its recent price (as of Sep 28, 2026).
What growth is priced into International Business Machines Corp (IBMB34)?
For today's price to be fair in a discounted-cash-flow model, International Business Machines Corp would have to grow free cash flow by +14.2 % per year for five years (discount rate 10.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -1.7 % per year. As of Sep 28, 2026.
What discount rate (WACC) does the fair value of IBMB34 use?
Our models discount International Business Machines Corp at 10.8 %: a base by market capitalisation (mega), damped by beta 0.68, country premium for Brazil. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For International Business Machines Corp that is +14.2 % per year a year over ten years, using the same discount rate (10.8 %) and the same formula as our fair value.
How much growth has International Business Machines Corp (IBMB34) delivered so far?
Over the past 5 years revenue at International Business Machines Corp grew -1.7 % a year. The price currently implies +14.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of International Business Machines Corp (IBMB34) growing?
The median revenue growth in the sector is +10.0 % a year. That is the yardstick for the growth priced into International Business Machines Corp (+14.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of International Business Machines Corp (IBMB34)?
The free-cash-flow yield on the price is 5.52 %: that much free cash flow International Business Machines Corp produces per unit of market value. When it exceeds the discount rate of our models (10.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of International Business Machines Corp (IBMB34)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For International Business Machines Corp it is R$677.53 per share (as of Sep 28, 2026), against a price of R$1,159. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is International Business Machines Corp stock overvalued or undervalued in 2026?
As of Sep 28, 2026, IBMB34 trades above its calculated fair value: price R$1,159, fair value R$677.53, a gap of about −42% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of IBMB34?
No. The price is what the market pays today (R$1,159); the fair value is what the company's own numbers justify (R$677.53). For International Business Machines Corp the two are R$481.23 per share apart. That gap is exactly why we show both numbers side by side.
How much is International Business Machines Corp worth?
The market values International Business Machines Corp at about R$1.1T (market capitalisation, as of Sep 28, 2026). Per share that is R$1,159; our models calculate a fair value of R$677.53 per share.
What do the bullish and bearish scenarios say about IBMB34?
Our models span a range for International Business Machines Corp: cautious scenario R$437.32, base R$677.53, optimistic R$942.74 per share (as of Sep 28, 2026, price R$1,159). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of IBMB34?
International Business Machines Corp trades at a price-to-earnings ratio of 19.8 (as of Sep 28, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R$677.53 is built from several models across several years. Other multiples: PEG 2.0, P/B 6.5, P/S 3.1, EV/EBITDA 15.2.
What is the PEG ratio of IBMB34?
The PEG ratio of International Business Machines Corp is 1.98 (P/E divided by earnings growth, as of Sep 28, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of International Business Machines Corp (IBMB34)?
Balance-sheet figures for International Business Machines Corp (as of Sep 28, 2026): return on equity 35.8%, debt of 1.68 per unit of equity. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is IBMB34 from its 52-week high?
International Business Machines Corp trades at R$1,159, about 32% below its 52-week high of R$1,695 and 12% above the low of R$1,035 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of R$677.53 is for.
Which stocks are comparable to International Business Machines Corp?
From the same area (Technology) we also value Accenture plc, Tata Consultancy Services Limited, Infosys Limited, HCL Technologies Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is International Business Machines Corp stock attractive at the current price?
The data as of Sep 28, 2026: price R$1,159, calculated fair value R$677.53 (−42%), Quality Score 60/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of IBMB34 calculated?
We run International Business Machines Corp through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of R$677.53, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. International Business Machines Corp itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of International Business Machines Corp (IBMB34)?
The closing price on Oct 2, 2026 was R$1,159. Our model-based fair value is R$677.53, about −42% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with International Business Machines Corp right now?
The price sits above even our optimistic bull case (R$942.74). 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 (R$437.32 to R$942.74) leaves room in how you read the outcome.
Key figures of International Business Machines Corp
How large is the market capitalisation of International Business Machines Corp (IBMB34)?
The market capitalisation of International Business Machines Corp is R$1.1T (≈ $207B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of International Business Machines Corp (IBMB34)?
The price-to-sales ratio of International Business Machines Corp is 3.10 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of International Business Machines Corp (IBMB34)?
Earnings per share at International Business Machines Corp are R$58.54 (price ÷ EPS = P/E 19.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of International Business Machines Corp (IBMB34)?
The dividend yield of International Business Machines Corp is 0.6% (payout 11.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of International Business Machines Corp (IBMB34)?
The net margin of International Business Machines Corp is 15.7% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of International Business Machines Corp (IBMB34)?
The return on equity (ROE) of International Business Machines Corp is 35.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of International Business Machines Corp (IBMB34)?
On an EBIT basis the return on assets of International Business Machines Corp is 4.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of International Business Machines Corp (IBMB34)?
The operating margin of International Business Machines Corp is 13.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at International Business Machines Corp (IBMB34)?
Revenue at International Business Machines Corp is growing +9.5% versus a year earlier (3y avg +3.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at International Business Machines Corp (IBMB34)?
Earnings per share at International Business Machines Corp are growing +14.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does International Business Machines Corp (IBMB34) carry?
The net debt of International Business Machines Corp is $47.7B (fiscal year 2025, ≈ 4.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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