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IBM

NYQ:IBM · US4592001014
IT ServicesLarge

360

13
EV / EBIT9
Price / Owner Earnings39
Owner Earnings Yield23
Dividend Yield91
Price/Sales38
EV / Gross Profit22
Price/Book22
Return on Capital27
Cash Return on Capital44
Return on Equity90
EBIT Margin94
Gross Profitability37
Cash Conversion38
Accruals23
Owner Earnings Margin98
Sales growth49
Profit Growth98
Long-Term EPS Growth43
Owner Earnings Growth98
Reinvestment39
Price momentum54
Debt load19
Refinancing27
Debt Payback7
Liquidity54
Analyst ratings41
Opinion Changes66
Price Target Upside14
Market mood67
Value Creation16/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

IBM generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryUSA
IndustryIT Services
SizeLarge
TypePublic Company
ExchangeNYSE
Founded1911
Employees313,385
Websiteibm.com
ISINUS4592001014
Last UpdateApr 2, 2026
Indices
Artificial Intelligence & Big DataDow Jones (USA)Renewable Energy UsersS&P 500 (USA)
Themes
Process AutomationMachine LearningIaaS (Infrastructure as a Service)GenAIGPU-as-a-Service (GaaS)Software DevelopmentCloud ManagementCloud Data ServicesArtificial IntelligenceCloud StorageCloud InfrastructureData Centers and Facilities

Description

International Business Machines Corporation (IBM) focuses on the intersection of business insight and technological innovation, and its operations. The company creates sustained value for clients by helping them leverage the power of hybrid cloud an…

Analysis

Hope premium

International Business Machines Corporation carries what we call a hope premium: an average business trading at an ambitious price.

The price is fair. You pay 19.3× its owner earnings: the cash an owner could take out each year, which is in the historically fair zone. At today's price, the market is assuming roughly 6% yearly growth; analysts expect 7%. The price, in other words, assumes less than the experts do.

The trajectory is solid and the balance sheet is fragile. The company scores 16/20 on our value-creation score: strong value creator.

What to watch: A large part of the company's book value is the price paid for past acquisitions. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
52
2023202420252026

All-time high

88

Feb 2024

All-time low

17

Feb 2026

Average rank

64

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
38
50
61
82
Price/Earnings
33
56
75
90
Price/Book
22
29
45
47
Dividend Yield
91
95
99
100
Value (overall)
48
63
89
91

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →