International Business Machines Corporation (IBM) fair value analysis
S&P 500 · Updated 2026-10-19
IBM price how computed
Forward Fair Value verdict
Fairly valuedIBM is trading at within about 10% of estimated fair value.
Based on TickrTrends' weekly Forward Fair Value model.
- Last price
- $227.13
- Sector
- Technology
- 12-month range
- $205.77–$329.23
- Market cap
- $214B
- From 52-week high
- -31.0%
- Shares outstanding
- 942M
- Rank in Technology by discount to fair value
- #103 of 181
Last price is our 2026-10-19 weekly price; the chart runs through 2026-10-16.
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.
IBM currently ranks #103 of 181 Technology stocks by discount to fair value. It has screened as Fairly valued for 6 consecutive weekly runs.
Fundamentals (4 quarters) how computed
- Market cap
- $214B
- P/E (trailing)
- 19x
- Revenue (TTM)
- $69.1B
- Net margin
- 15.5%
- EPS (TTM)
- $12.01
- Gross margin
- 57.7%
- Debt / equity
- 1.89
- Revenue growth (3-yr avg)
- 5.4%
- Shares outstanding
- 942M
Derived indicators how computed
- Quality grade
- C
- Margin trend
- Stable
- 52-week position
- The bottom quarter of its range
- DCF cross-check
- Overvalued
Technicals how computed
- RSI (14-day)
- 48 · neutral
- 50-day average
- $232.03
- 200-day average
- $251.69
- Moving-average state
- 50-day below 200-day (death cross state); price below both averages
Dividends how computed
- Paid, last 12 months
- $6.74 per share (4 payments)
- Yield on last price
- 2.97%
- Consecutive years of increases
- 25
- Last ex-dividend date
- 2026-08-10
- Last payment date
- 2026-09-10
Earnings how computed
- Last 8 quarters vs consensus
- 7 beat, 0 missed
- Quarter by quarter
- 2026-06 ▬ met (0.0%)
2026-03 ▲ beat (+5.5%)
2025-12 ▲ beat (+5.4%)
2025-09 ▲ beat (+8.2%)
2025-06 ▲ beat (+5.7%)
2025-03 ▲ beat (+11.9%)
2024-12 ▲ beat (+3.7%)
2024-09 ▲ beat (+3.1%)
Analyst consensus how computed
This is not TickrTrends' verdict.
- Analyst ratings
- 12 buy · 10 hold · 2 sell (24 analysts)
- Consensus lean
- Buy-leaning
- Consensus price target
- $243
- Target vs last price
- +7.0%
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 $205.77–$329.23.
- The 14-day relative strength index sits at a neutral 48.
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
Forward Fair Value applies a conservatively normalized historical price-to-earnings multiple to the consensus earnings estimate for the next full fiscal year; how TickrTrends computes it.
Recent IBM news
TickrTrends' derived news-sentiment signal for IBM is currently leaning positive, computed from recent coverage.
- Technology Analysts to Discuss AI and Enterprise Data Platforms Featuring IBM (IBM) in Las Vegas (gurufocus.com, 2026-10-23)
- International Business Machines Corporation 2026 Q3 - Results - Earnings Call Presentation (NYSE:IBM) 2026-10-22 (seekingalpha.com, 2026-10-22)
TickrTrends take: IBM reported its 2026 Q3 results on October 22, providing updated financial performance data that informed TickrTrends' assessment of the company as fairly valued. For investors focused on valuation metrics, the key question is whether Q3 performance supports the current fair value rating or signals potential shifts in the company's fundamental value within the Technology sector. Monitoring how IBM's revenue, profitability, and cash generation trends in this quarter compare to prior periods will be essential for assessing whether the fairly valued designation remains appropriate going forward. - IBM (IBM) Eyes Q3 Earnings on October 21 Amid Innovation and Dividend Focus (gurufocus.com, 2026-10-21)
TickrTrends take: IBM is scheduled to report third quarter earnings on October 21, providing investors with an opportunity to assess the company's operational performance within the context of its current fairly valued status. A valuation-focused reader should monitor how the company's innovation initiatives and dividend strategy translate into earnings growth and cash flow, as these factors will be critical in determining whether the fairly valued assessment remains appropriate or requires adjustment. The Technology sector backdrop makes competitive positioning and margin performance particularly relevant metrics to evaluate during the earnings release.
More IBM news
- IBM Highlights AI Revenue Growth and Strong Liquidity Ahead of Q4 (IBM) (gurufocus.com, 2026-10-21)
- Is IBM (IBM) Overvalued After Q3 Earnings Miss? EPS $1.71, Revenue $17.1B -- GF Score: 76/100 (gurufocus.com, 2026-10-21)
- IBM (IBM) Set to Report Q3 Earnings Amid Dividend Sustainability Focus (gurufocus.com, 2026-10-20)
- IBM Ventures Invests in Leena AI to Expand AI Solutions for Back-Office Automation (IBM) (gurufocus.com, 2026-10-20)
- IBM Q3 Earnings Preview: What To Expect From Upcoming Report (gurufocus.com, 2026-10-16)
- IBM Maintained by Morgan Stanley -- Price Target Raised to $238 (gurufocus.com, 2026-10-15)
- IBM (IBM) Partners with Siemens to Advance Nanostack Architecture, Shares Rise Slightly (gurufocus.com, 2026-10-14)
- IBM: Is Customer Financing Flattering Its Cash Recovery? (insidermonkey.com, 2026-10-14)
- International Business Machines Corporation (IBM) Is a Trending Stock: Facts to Know Before Betting on It (zacks.com, 2026-10-12)
- IBM Slid 5% Without An Earnings Report - Oct. 21 May Change The Case (NYSE:IBM) (seekingalpha.com, 2026-10-11)
- IBM Consulting Grew Profit 15% on Nearly Flat Sales. Can That Continue? (insidermonkey.com, 2026-10-09)
What people are saying
Follow the IBM conversation: Stocktwits · Reddit · X
TickrTrends weekly updates
- 2026-10-19 — IBM's sector discount rank declined this week, moving from number 128 to number 136 among Technology sector companies. This shift indicates that IBM has become relatively less discounted compared to its peers within the sector. The stock maintains a Fairly valued assessment based on current valuation metrics.
- 2026-10-12 — No material change this week: the verdict, bands and grades all held steady.
- 2026-10-11 — No material change this week: the verdict, bands and grades all held steady.
- 2026-10-10 — IBM's quality grade improved to C this week from D, reflecting positive movement in TickrTrends' derived indicators. The stock remains positioned as fairly valued within the Technology sector.
- 2026-10-06 — No material change this week: the verdict, bands and grades all held steady.
- 2026-09-28 — IBM's position within the Technology sector improved this week as its sector discount rank moved from 151 to 140, indicating stronger relative value compared to peer companies. The valuation verdict shifted from Overvalued to Fairly valued, reflecting a change in TickrTrends' assessment of the stock's current pricing relative to fundamental metrics.
- 2026-09-21 — IBM's sector discount ranking declined this week, moving from #146 to #151 among Technology sector stocks. This shift reflects a modest weakening in IBM's relative valuation position within its peer group. The stock maintains an overvalued assessment according to current valuation metrics.
- 2026-09-17 — No material change this week: the verdict, bands and grades all held steady.
Frequently asked questions
Is IBM stock undervalued?
Based on TickrTrends' Forward Fair Value model (updated 2026-10-19), 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 #103 of 181 Technology stocks in TickrTrends' coverage by discount to fair value.
Is IBM overbought or oversold?
IBM's 14-day RSI is in neutral territory - neither overbought nor oversold.
Does IBM pay a dividend?
Yes. IBM paid $6.74 per share over the last twelve months (4 payments), a 2.97% yield on TickrTrends' last price, and has raised the annual total for 25 consecutive years. The last ex-dividend date was 2026-08-10.
Does IBM usually beat earnings estimates?
Over its last 8 reported quarters IBM beat the consensus estimate 7 times and missed 0 times, by TickrTrends' comparison of reported and estimated EPS.
What do analysts say about IBM?
Of 24 analysts covering IBM, 12 rate it a buy, 10 a hold and 2 a sell - buy-leaning, with a consensus price target of $243 (+7.0% versus TickrTrends' last price). This is the analyst consensus, not TickrTrends' Forward Fair Value verdict.
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