Value Sense
IBM
International Business Machines Corporation (IBM)
Last Price$250.2(0.9%)
Market Cap$236.6B
Intrinsic value score
6/10
Good
Intrinsic value
$205.6
DCF value - $196.6 Relative value - $214.5
Overvalued
17.8%
LTM P/E
39.3x
Peer set median 27.3x
Discount rate
6.1%
IBM
is 17.8% overvalued
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IBM Intrinsic value

Key Highlights:
Relative Value vs Current Share Price
As of Mar 03, 2025 IBM Relative Value is $217.0, which is overvalued by 13.3%, compared to current share price of $250.2.
DCF Value vs Current Share Price
As of Mar 03, 2025 IBM DCF Value is $197.9, which is overvalued by 20.9%, compared to current share price of $250.2.
Methodology
Price per share, $
IBM
Intrinsic value$205.6
Overvalued by17.8%
Current share price
250.2
Relative value
217.0
DCF value
197.9

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IBM Historical Intrinsic Value

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IBM vs Peer Set: Intrinsic Value Comparison

General

Intrinsic Value

Financials

Company name

Undervaluation/Overvaluation

Revenue growth

EPS growth

Net income margin

International Business Machines Corporation logo
International Business Machines CorporationIBM
(17.8%)
2.2%
352.2%
12.1%
Median Peer Set
1.8%
6.6%
11.4%
Gartner, Inc. logo
Gartner, Inc.IT
(34.5%)
6.1%
44.3%
20.0%
Broadridge Financial Solutions, Inc. logo
Broadridge Financial Solutions, Inc.BR
(29.7%)
7.4%
10.6%
10.7%
Infosys Limited logo
Infosys LimitedINFY
(18.1%)
1.9%
6.9%
17.1%
Accenture plc logo
Accenture plcACN
(17.4%)
1.2%
6.2%
11.2%
Fidelity National Information Services, Inc. logo
Fidelity National Information Services, Inc.FIS
(15.4%)
(32.4%)
(59.3%)
(67.8%)
Fiserv, Inc. logo
Fiserv, Inc.FI
(12.0%)
7.1%
7.2%
15.3%
Cognizant Technology Solutions Corporation logo
Cognizant Technology Solutions CorporationCTSH
39.3%
2.0%
7.4%
11.3%
CGI Inc. logo
CGI Inc.GIB
39.8%
1.7%
(100.0%)
11.5%
CDW Corporation logo
CDW CorporationCDW
65.1%
(10.0%)
(0.5%)
5.2%
Wipro Limited logo
Wipro LimitedWIT
90.3%
(3.8%)
(2.6%)
12.3%

Explore more intrinsic value tools hub for IBM

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FAQ

What is International Business Machines Corporation intrinsic value?

As of Mar 03, 2025, International Business Machines Corporation Intrinsic Value is $205.6. This suggests it may be overvalued by 17.8% compared to its current price of around $250.2.

What is International Business Machines Corporation DCF (discounted cash flow) valuation?

As of Mar 03, 2025, International Business Machines Corporation's Discounted Cash Flow (DCF) valuation estimates its share price at $197.9. This suggests it may be overvalued by 20.9% to its current price of around $250.2, using a discount rate of 6.1% and terminal growth rate of 4.0%.

Is International Business Machines Corporation overvalued or undervalued?

International Business Machines Corporation is currently considered overvalued based on its Discounted Cash Flow (DCF) valuation and Relative Valuation, which estimates its share price to be $205.6, compared to a market price of around $250.2. This suggests a potential overvaluation of 17.8%.