IBM

IBM US Information Technology IT Consulting & Other Services
S&P 500 Dow Jones
$243.29
+3.96%
Delayed · cached 15 min

Fair value analysis

IBM
IBM
Information Technology›IT Consulting & Other Services
$243.29
Close used for this calculation
$180.88Fair value
Financial DNA Score
Profitability · Returns · Balance Sheet · Efficiency · Growth
43/100
Profitability12/25
Returns13/25
Balance Sheet7/25
Efficiency11/25
Growth4/25
Average
Quality radar
43Prof.12/25Ret.13/25Eff.11/25B.Sht7/25Growth4/25

Consensus fair value

$180.88
Above FV
▼ -25.7% against the close used
Model range $11.17 – $239.18
The lowest and highest of the models that produced a value. This is the spread of the methods, not a price target.

Price target range & 52-week position

Bear$11.17Fair value$180.88Bull$239.18
FairClose
52-week traded range
52W low $205.7752W high $329.23

The 52-week range is measured from the stored price history, not estimated.

Valuation summary

Trading above the consensus fair value

IBM closed at $243.29, 34.5% above the consensus fair value of $180.88 drawn from 9 valuation models.

Financial DNA score 43/100 — Average. P/E of 21.8x against the 20x sector multiple the P/E model uses.

Quantitative summary only — not investment advice.

All valuation models

DCF Valuation
$239.18
-1.7%
Σ[CF×(1+g)^n/(1.10)^n] + TV/(1.10)^10
g=8%, r=10%, tg=3%, n=10yr
Graham Number
$95.32
-60.8%
√(22.5 × EPS × BVPS)
EPS=11.17, BVPS=36.15 · outside Graham range (P/E 21.8, P/B 6.7) — asset-light, treat as a rough floor
P/E Fair Value
$223.40
-8.2%
EPS × 20x (sector P/E)
EPS=11.17, Sector P/E=20x
Peter Lynch (PEG)
$11.17
-95.4%
EPS × Growth% (PEG = 1 is fair)
EPS=11.17, g=1%
EV/EBITDA
$82.72
-66.0%
(EBITDA × 10x − Net Debt) ÷ Shares
EBITDA=12.61B
Dividend Discount (DDM)
$85.61
-64.8%
D1 ÷ (r − g) where D1 = D0×(1+g)
D0=6.71, r=10%, g=2%
Book Value (P/B)
$143.31
-41.1%
BVPS × (ROE−g)÷(r−g) [Justified P/B — RIM-based]
BVPS=36.15, ROE=30.8%, g=3%, r=10%
Reverse DCF
$243.29
+0.0%
Solve for g: Price = Σ[EPS×(1+g)^n/(1.10)^n] + TV
Implied: 8.3% | Historical: -1%
Margin of Safety
$139.48
-42.7%
Avg(DCF, Graham, P/E) × 75% (25% safety buffer)
Avg fair value=185.97, MoS=25%

Computed on September 12, 2026 from the most recent annual report on file and that day's closing price. Where a company has seen its earnings move sharply since its last annual report, this figure will lag the market.

Educational data only. Not a recommendation to buy, sell or hold any security.

Educational data only. Not a recommendation to buy, sell or hold any security.