IBM
IBM
$252.22
▲ 1.3%Updated Today 7:15 PM ET
▼ Down 12.0% over the last 12 months
Market Cap
$234.13B
P/E
21.77x
Forward P/E (est.)
15.55x
ROE
35.5%
Revenue Growth
9.7%
EPS Growth
94.5%
Profit Margin
15.6%
FCF Yield
4.5%
Debt / Equity
1.88x
ROIC
—
Interest Coverage
—
Current Ratio
0.8x
Dividend Yield
2.5%
Implied Growth (rev. DCF)
3.6%
Rating Score
64/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what IBM's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. IBM trades near $252.22, around its 50-day average ($250.54) and 200-day average ($273.45). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 30 it is oversold — selling has been heavy and a bounce is possible.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. IBM's is $14.83 (~5.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month IBM found buyers near $230.94 (support) and sellers near $332.46 (resistance); its 52-week range is $212.34–$332.46. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.3× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
IBM (IBM) is a mega-cap company in the IT Consulting & Other Services industry, part of the Information Technology sector of the S&P 500, with a market value around $234.13B.
In its latest reported year it generated about $67.53B in revenue and $10.59B in net profit.
Our model rates IBM Favorable (64/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
4.2%
Revenue moved from $57.35B in 2021 to $67.53B in 2025, a 4.2% compound annual growth rate. The most recent year grew a steady 9.7% year over year. Slower, mature growth is common for established businesses.
Gross Margin
58.2%
Operating Margin
15.3%
Net Margin
15.7%
ROE
35.5%
IBM keeps about 15.6% of each sales dollar as net profit, with a 58.2% gross margin and 15.3% operating margin. Return on equity is 35.5%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$62.94B
Net Debt
$52.13B
Net Debt / EBITDA
—
Debt / Equity
1.88x
Leverage: debt-to-equity is 1.9x, with a current ratio of 0.8x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $62.94B of total debt against $10.82B of cash.
Operating CF
$13.19B
Free Cash Flow
$12.10B
FCF Margin
17.9%
In the latest year IBM produced about $13.19B of operating cash flow and $12.10B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.5% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
21.77x
P/S
3.77x
P/B
7.8x
EV / EBITDA
—
IBM trades at 21.8x trailing earnings (about 15.6x on estimated forward earnings), 3.8x sales, and 7.8x book value. Reverse-engineering today's price implies the market expects roughly 3.6% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How IBM stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (72 S&P 500 companies), IBM ranks #28 of 72 by our overall rating. It trades at a discount versus the sector on earnings (21.8x P/E vs. 35.6x median) with a higher return on equity (35.5% vs. 25.6%) and slower revenue growth (9.7% vs. 17.4%).
P/E vs sector
21.8x
median 35.6x
ROE vs sector
35.5%
median 25.6%
Growth vs sector
9.7%
median 17.4%
Sector rank
#28
of 72 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$240.70 – $407.34
vs. $252.22 today · expected CAGR -1% – 10%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $74.29B | $81.72B | $89.89B | $98.88B | $108.77B |
| Net income | $11.89B | $13.07B | $14.38B | $15.82B | $17.40B |
| EPS | $12.65 | $13.91 | $15.30 | $16.83 | $18.52 |
| Share price (low) | $164.40 | $180.84 | $198.93 | $218.82 | $240.70 |
| Share price (high) | $278.22 | $306.04 | $336.65 | $370.31 | $407.34 |
| CAGR (low–high) | -35% / 10% | -15% / 10% | -8% / 10% | -3% / 10% | -1% / 10% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for IBM:
- High net margins (15.6%) point to pricing power or efficiency.
- Strong return on equity (35.5%) shows capital is put to work well.
- Healthy free-cash-flow yield (~4.5%) funds buybacks and dividends.
- Pays a 2.5% dividend on top of any price gains.
- Our model's overall read is Favorable (64/100).
The case against IBM:
- Elevated leverage (debt/equity 1.9x) adds financial risk.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 1.9x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: IBM is a mega-cap information technology business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 21.8x earnings, which our model scores Favorable (64/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.