Information Technology · IT Consulting & Other Services · US stock · price as of 16 Oct 2026
Key indicators
Price
$232.14
52-week range
$197.77 – $330.09
Market cap
$221.3B
P/E (trailing)
20.6×
EV / EBITDA
22.8×
Free-cash-flow yield
6.2%
Dividend yield
2.9%
Revenue (last 12 months)
$69.1B
Revenue growth (3y a year)
3.7%
Operating margin
17.9%
Return on invested capital
11.7%
Net debt / EBITDA
4.9×
Fair value
Blended fair value$194.88 range $185 – $204
Versus priceFair−16% to fair value
Peer multiples
$254.52
Fundamentals-adjusted multiple
$181.97
10-year DCF (market-scaled)
$148.15
Earnings power value (floor, not blended)
$23.64
Model uncertainty
High
X-Ray Score
46/ 100 · High confidence · ahead of 36% of sector peers
Valuation68
Growth54
Profitability35
Financial health20
Dividends51
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Known as IBM, International Business Machines provides hybrid cloud software, artificial intelligence tools, consulting services and computing infrastructure. Its customers are mainly large companies and public sector bodies, which use IBM to modernise software, run critical systems and move to the cloud. The business is organised into software, consulting and infrastructure divisions, and it owns the Red Hat open-source software business.
IBM earns revenue from software licences and subscriptions, consulting projects, and infrastructure systems with related support. Revenue over the last twelve months was $69.1 billion, and it has grown at 3.7% a year across the last three years. The operating margin is 17.9%, and the business earns a profit of 12% on the capital invested in it. It carries net debt of 4.9 times EBITDA. A dividend is paid, with a yield of 2.9%.
StocksXray gives International Business Machines Corp an X-Ray Score of 46 out of 100 (high confidence), ahead of 36% of the S&P 500 stocks in its sector. Its strongest lens is valuation (68) and its weakest is financial health (20).
Our fair value blend is $194.88 (range $184.97 to $204.13). At $232.14 the stock trades 19% above that blend, so the label is "Fair" with high model uncertainty. Fair value is a range, not a price target.
XStocksXray
International Business Machines Corp (IBM)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$111.86
$123.76
$150.80
$210.02
$290.30
$232.14
Market cap
$101.2B
$112.9B
$139.0B
$196.8B
$275.4B
$221.3B
P/E
17.6×
68.8×
18.5×
32.7×
26.0×
20.6×
EV / revenue
2.7×
2.7×
3.1×
3.9×
4.9×
4.1×
EV / EBITDA
25.6×
67.8×
18.4×
32.4×
26.9×
22.8×
Price / free cash flow
9.4×
12.4×
11.0×
15.9×
22.8×
16.0×
Free-cash-flow yield
10.6%
8.1%
9.1%
6.3%
4.4%
6.2%
Price / book
5.4×
5.1×
6.2×
7.2×
8.4×
6.4×
Dividend yield
5.86%
5.32%
4.40%
3.18%
2.31%
2.90%
Fundamentals checklist ● 3 Good · ● 7 Average · ● 6 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−2.7%Bad
Free-cash-flow yield6.2%Good
Risk models
Altman Z score3.9×Average
Piotroski F-Score5 of 9Bad
Growth
EPS growth (3y)83.8%Good
Free-cash-flow growth (3y)10.0%Average
Revenue growth (3y)3.7%Average
Growth consistency100%Good
Balance sheet
Current ratio0.8×Bad
Net debt / EBITDA4.9×Bad
Interest cover6.4×Bad
Valuation
Fair value vs price0.8×Average
EBIT / EV yield4.4%Average
Profitability
Return on invested capital11.7%Bad
Operating margin17.9%Average
Gross profitability26.4%Average
XStocksXray
International Business Machines Corp (IBM)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
57,350
60,530
61,860
62,753
67,535
69,096
Gross profit
31,486
32,687
34,300
35,551
39,297
40,145
Operating income
5,992
2,372
10,297
7,509
12,263
12,368
Net income
5,743
1,639
7,502
6,023
10,593
10,725
Diluted EPS ($)
6.35
1.80
8.14
6.43
11.17
11.28
Free cash flow
10,734
9,089
12,686
12,397
12,102
13,790
Gross margin
54.9%
54.0%
55.4%
56.7%
58.2%
58.1%
Operating margin
10.4%
3.9%
16.6%
12.0%
18.2%
17.9%
Net margin
10.0%
2.7%
12.1%
9.6%
15.7%
15.5%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
132,001
127,243
135,241
137,175
151,880
152,099
Cash
6,650
7,886
13,068
13,947
13,587
7,172
Total debt
58,468
55,700
62,972
60,032
67,684
67,759
Equity
18,901
21,944
22,533
27,307
32,648
34,452
Dividend per share ($)
6.55
6.59
6.63
6.67
6.71
6.73
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.