International Business Machines

Valuation Analysis

About the Company

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment delivers strategy and technology services and intelligent operations, providing business transformation, technology implementation, managed services, application modernization, and AI-powered solutions. The Infrastructure segment provides on-premises and cloud-based server, and storage solutions, as well a

International Business Machines Stock at a Glance

International Business Machines (IBM) is currently trading at $272.24 with a market capitalization of $255.9B. The trailing P/E ratio stands at 24.09x, with a forward P/E of 20.28x. The 52-week range spans from $212.34 to $332.46; the current price is 18.1% below the yearly high. Year-over-year revenue growth stands at +9.5%. The net profit margin stands at 15.61%.

💰 Dividend

International Business Machines pays an annual dividend of $6.76 per share, representing a yield of 2.48%. The payout ratio stands at 59.47%.

📊 Analyst Rating

21 analysts rate International Business Machines (IBM) on consensus: Buy. The average price target is $290.89, implying +6.85% from the current price. Analyst price targets range from $195.00 to $390.00.

International Business Machines: The Investment Case in Detail

International Business Machines (IBM) operates in the Technology — specifically Information Technology Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Return on equity of 35.77% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Free cash flow is positive and net margins stand at 15.61%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

The Bear Case

The debt-to-equity ratio of 211.17% is elevated, meaning the company relies heavily on creditors — refinancing terms will become more important than operational performance in the next economic downturn.

What to Watch Next

• The forward P/E of 20.28x is meaningfully below the trailing 24.09x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to relatively defensive market behavior, higher leverage relative to equity.

Trading Data

💵 Dividend Info

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