International Business Machines Corporation (IBM) Valuation
Historical valuation analysis based on 1281 data points (2021-09-10 to 2026-10-16)
Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. It provides software, IT consulting services, and hardware to help business cu...
International Business Machines Corporation (IBM) currently trades at a P/E ratio of 20.39 (historical range: 11.61–107.57, median: 25.83), placing it at the 20th percentile — below its historical average, P/S ratio of 3.17 (range: 1.42–4.57, 64th percentile — above its historical average), EV/EBITDA of 23.76 (range: 15.40–110.88, 19th percentile).
Over the historical period (2021-09-10 to 2026-10-16), International Business Machines Corporation's P/E ratio has contracted by 30% over the observed period (from an average of 43.8 to 30.6).
International Business Machines Corporation trades below its historical valuation range, with most metrics below their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 20.39 | 25.83 | 20th | below its historical average |
| P/S Ratio | 3.17 | 2.77 | 64th | above its historical average |
| EV/EBITDA | 23.76 | 34.13 | 19th | cheap relative to its history |
| FCF Yield | 6.31% | 6.66% | 43th | near its historical average |
International Business Machines Corporation (IBM) Valuation & P/E History
International Business Machines Corporation (IBM) is a US-listed stock operating in the Technology sector, specifically the Information Technology Services industry currently trading at $231.13 with a market capitalization of $217.8 billion. This page provides historical valuation analysis for IBM based on 1281 data points covering 2021-09-10 to 2026-10-16. The P/E ratio of 20.39 is below the historical median of 25.83, placing IBM at the 20th percentile of its valuation range. The P/S ratio of 3.17 compares to a median of 2.77.
IBM Valuation Metrics & Historical Range
The valuation table above shows International Business Machines Corporation's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether IBM is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests IBM is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for International Business Machines Corporation.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is IBM Overvalued or Undervalued?
International Business Machines Corporation trades below its historical valuation range, with most metrics below their median levels. The overall valuation percentile of 34 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive IBM is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full IBM analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.IBM trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.