International Business Machines Corporation (IBM) fair value analysis

S&P 500 · Updated 2026-09-07

International Business Machines Corporation is a technology company that provides hardware, software, and IT services to businesses and organizations worldwide. The company operates across multiple geographic regions including North America, Europe, Asia-Pacific, and other international markets.

Forward Fair Value verdict

Fairly valued

Based on TickrTrends' weekly Forward Fair Value model, IBM is trading at within about 10% of estimated fair value.

IBM currently ranks #138 of 199 Technology stocks by discount to Forward Fair Value. It has screened as Fairly valued for 3 consecutive weekly runs.

Last price: $234.89
Sector: Technology
12-month range: $223.65–$320.42

Derived indicators

Coarse bands from TickrTrends' weekly models; exact figures are part of the full report.

Quality grade: D
Leverage: High
Margin trend: Expanding
Revenue growth: Modest
RSI zone: Neutral
52-week position: The bottom quarter of its range
DCF cross-check: Overvalued

What our data shows for IBM

Our model validated 17 trailing price-to-earnings windows for IBM, built from quarterly earnings records.
Shares are trading in the lower third of their 12-month price range of $223.65–$320.42.
The 14-day relative strength index sits at a neutral 51.

The exact numbers are one step away

The precise Forward Fair Value dollar figure for IBM
Exact discount / premium to today's price
The normalized historical P/E behind the estimate, and how many quarters support it
Forward EPS input and fiscal-year basis
Screeners and rankings across the full S&P 500 and Nasdaq universes

See the exact fair value →

How Forward Fair Value works

TickrTrends computes a Forward Fair Value for every covered stock each week: a conservatively normalized historical price-to-earnings multiple is applied to the analyst-consensus earnings estimate for the next full fiscal year. Every input window is validated for continuity and every result is screened for plausibility before publication.

Recent IBM news

TickrTrends' derived news-sentiment signal for IBM is currently leaning positive, computed from recent coverage.

Evercore Warns AI IPOs Could Pressure These Struggling Stocks. IBM and AppLovin Face Different Tests (insidermonkey.com, 2026-09-07)
TickrTrends take: According to Evercore's analysis, IBM faces pressure from AI-related market dynamics alongside AppLovin, though the nature of their challenges differs. Given TickrTrends' assessment that IBM is fairly valued, investors should monitor whether the company's artificial intelligence initiatives and competitive positioning can sustain its current valuation levels amid potential sector rotation toward newer AI-focused entrants. The tension between IBM's established market position in the Technology sector and the emerging competitive threats from AI IPOs represents a key variable for valuation watchers tracking the stock.
Arista Networks vs. IBM: Comparing Quarterly Revenue Trends Between These Artificial Intelligence Giants (finance.yahoo.com, 2026-09-06)
TickrTrends take: IBM is positioned in the Technology sector and currently trades at a valuation that TickrTrends assesses as fairly valued. Comparisons between IBM and Arista Networks on quarterly revenue trends merit attention for investors tracking how the company's growth rate stacks against competitive dynamics in the artificial intelligence space, particularly given that valuation assessments depend on earnings momentum relative to peers. For a fairly valued stock, tracking whether IBM's quarterly results maintain pace with or diverge from comparable companies becomes a key metric for determining if the current valuation remains appropriate.
Retail Investors’ 2 Favorite AI Stocks for the Long Term: Alphabet, IBM (insidermonkey.com, 2026-09-01)
TickrTrends take: IBM's inclusion among retail investors' favored AI stocks reflects confidence in its long-term positioning, though the Fairly valued verdict suggests the market has already priced in reasonable expectations for its artificial intelligence initiatives. For valuation-conscious investors, the key consideration is whether IBM can demonstrate that its AI investments will generate returns sufficient to justify its current valuation, rather than relying on sector enthusiasm alone. Monitoring IBM's actual AI revenue contribution and margins relative to its overall results will be important for assessing whether the Fairly valued rating remains appropriate as the technology sector evolves.

What people are saying

Follow the IBM conversation: Stocktwits · Reddit · X

TickrTrends weekly updates

2026-09-07 — No material change this week: the verdict, bands and grades all held steady.
2026-09-06 — No material change this week: the verdict, bands and grades all held steady.
2026-08-31 — TickrTrends initiated weekly Forward Fair Value coverage of this stock.

Frequently asked questions

Is IBM stock undervalued?

Based on TickrTrends' Forward Fair Value model (updated 2026-09-07), IBM is trading at within about 10% of estimated fair value and screens as fairly valued. The exact fair value and discount are available to subscribers.

What is IBM's TickrTrends verdict?

IBM's current verdict is Fairly valued, refreshed with every weekly Forward Fair Value run.

How does IBM compare to other Technology stocks?

IBM ranks #138 of 199 Technology stocks in TickrTrends' coverage when sorted by discount to Forward Fair Value.

Is IBM overbought or oversold?

IBM's 14-day RSI is in neutral territory - neither overbought nor oversold.

All Technology fair-value coverage →

Head-to-head comparisons

IBM vs ADI · IBM vs FTNT · IBM vs GRMN · IBM vs IIIV · IBM vs NVMI