# International Business Machines Corporation (IBM) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Technology / IT Services. Price $250.04, market value $236.3 billion.

## Valuation
- **P/E (trailing): 21.3×** (5-yr avg 32.9×, 3-yr avg 25.9×). International Business Machines Corporation trades at 21.3× trailing earnings, well below its own five-year average of 32.9×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 18.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.26**. A PEG of 0.26 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.4×**. Each dollar of revenue is priced at 3.4×.
- **Price / book: 6.7×**. The shares trade at 6.7× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 6.2%** (5-yr avg 7.6%). Free cash flow equals 6.2% of the market value, in line with its five-year average of 7.6%. Above 5% is generally attractive.
- **Earnings yield: 4.7%**. The inverse of the P/E: 4.7% of the price is earned each year.

## Profitability
- **Gross margin: 58.0%**. International Business Machines Corporation keeps 58.0% of revenue after the direct cost of what it sells.
- **Net margin: 15.7%**. 15.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 32.4%**. 32.4% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on assets: 7.4%**. Each dollar of assets produces 7.4% of profit.

## Growth
- **Revenue growth (1 yr): 7.6%** (3-yr 3.7%/yr, 5-yr 4.1%/yr). Revenue grew 7.6% over the last year, against 4.1% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 73.7%** (3-yr 83.8%/yr, 5-yr 12.4%/yr). Earnings per share rose 73.7%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 10.0%/yr**. Free cash flow has compounded at 10.0% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.88**. Debt is 1.88 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Current ratio: 0.96** (quick 0.96). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.70%** ($6.74 per share, trailing). International Business Machines Corporation yields 2.70%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 59%** (43% of free cash flow). 59% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 1.5%/yr** (1-yr 0.6%). The dividend has grown 1.5% a year over five years.

## Analyst view
- **Analyst consensus: buy** (23 analysts). 23 analysts cover International Business Machines Corporation; the consensus is buy, with an average price target of $259.30 (+4% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -16.3%** (YTD -13.6%, 3-mo 11.6%). The shares are down 16.3% over twelve months including dividends.
- **From 52-week high: -24.8%** (25.5% above the low). Trading 25% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 63**. An RSI of 63 is neutral.
- **Beta (1 yr): 0.87** (volatility 48%). Beta of 0.87 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=IBM · Page: https://foliofundamentals.com/stocks/ibm

Not investment advice.