International Business Machines Corporation

BRSE:IBM Stock Report

Market Cap: CHF 153.8b

International Business Machines Valuation

Is IBM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IBM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IBM (CHF135) is trading below our estimate of fair value (CHF216.59)

Significantly Below Fair Value: IBM is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IBM?

Other financial metrics that can be useful for relative valuation.

IBM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.6x
Enterprise Value/EBITDA15.5x
PEG Ratio4.3x

Price to Earnings Ratio vs Peers

How does IBM's PE Ratio compare to its peers?

The above table shows the PE ratio for IBM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30.1x
ACN Accenture
29.8x10.7%US$209.0b
TCS Tata Consultancy Services
34.5x9.7%₹16.3t
INFY Infosys
28.7x7.2%₹7.8t
HCLTECH HCL Technologies
27.3x8.4%₹4.5t
IBM International Business Machines
21.5x5.0%CHF 180.5b

Price-To-Earnings vs Peers: IBM is good value based on its Price-To-Earnings Ratio (21.5x) compared to the peer average (30.1x).

Price to Earnings Ratio vs Industry

How does IBM's PE Ratio compare vs other companies in the European IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.4%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.4%
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No more companies

Price-To-Earnings vs Industry: IBM is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the European IT industry average (20.1x).

Price to Earnings Ratio vs Fair Ratio

What is IBM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IBM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate IBM's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IBM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 135.00
CHF 161.15
+19.4%
13.7%CHF 189.79CHF 111.14n/a19
Aug ’25CHF 135.00
CHF 163.59
+21.2%
14.2%CHF 194.84CHF 114.10n/a19
Jul ’25CHF 135.00
CHF 160.60
+19.0%
13.4%CHF 192.01CHF 116.10n/a19
Jun ’25CHF 135.00
CHF 163.14
+20.8%
13.9%CHF 194.61CHF 117.67n/a18
May ’25CHF 135.00
CHF 168.47
+24.8%
12.9%CHF 197.62CHF 119.49n/a18
Apr ’25CHF 135.00
CHF 168.11
+24.5%
15.6%CHF 202.53CHF 113.02n/a18
Mar ’25CHF 135.00
CHF 160.26
+18.7%
15.2%CHF 198.41CHF 110.72n/a19
Feb ’25CHF 135.00
CHF 153.11
+13.4%
16.3%CHF 192.13CHF 107.21n/a19
Jan ’25CHF 135.00
CHF 127.50
-5.6%
14.9%CHF 176.63CHF 92.52n/a17
Dec ’24CHF 135.00
CHF 131.71
-2.4%
11.2%CHF 160.93CHF 98.89n/a16
Nov ’24CHF 135.00
CHF 131.43
-2.6%
11.3%CHF 160.99CHF 98.94n/a16
Oct ’24CHF 135.00
CHF 132.06
-2.2%
12.0%CHF 169.03CHF 98.90n/a16
Sep ’24CHF 135.00
CHF 126.93
-6.0%
10.3%CHF 153.76CHF 96.65n/a15
Aug ’24CHF 135.00
CHF 124.38
-7.9%
10.0%CHF 150.51CHF 94.60CHF 135.0016
Jul ’24CHF 135.00
CHF 126.16
-6.5%
8.4%CHF 146.67CHF 99.59CHF 135.0014
Jun ’24CHF 135.00
CHF 123.51
-8.5%
8.3%CHF 144.18CHF 97.90CHF 135.0014
May ’24CHF 135.00
CHF 124.68
-7.6%
8.3%CHF 144.79CHF 98.32CHF 135.0014
Apr ’24CHF 135.00
CHF 133.97
-0.8%
9.0%CHF 153.23CHF 102.15CHF 135.0015
Mar ’24CHF 135.00
CHF 131.46
-2.6%
8.9%CHF 149.94CHF 99.96CHF 135.0015
Feb ’24CHF 135.00
CHF 131.46
-2.6%
8.9%CHF 149.94CHF 99.96CHF 135.0015
Jan ’24CHF 135.00
CHF 133.05
-1.4%
9.2%CHF 155.67CHF 104.73CHF 135.0015
Dec ’23CHF 135.00
CHF 139.18
+3.1%
8.5%CHF 158.67CHF 110.08CHF 135.0015
Nov ’23CHF 135.00
CHF 139.18
+3.1%
8.5%CHF 158.67CHF 110.08CHF 135.0015
Oct ’23CHF 135.00
CHF 139.68
+3.5%
8.9%CHF 159.11CHF 109.33CHF 135.0015
Sep ’23CHF 135.00
CHF 139.59
+3.4%
7.7%CHF 157.53CHF 114.04CHF 135.0015
Aug ’23CHF 135.00
CHF 137.47
+1.8%
7.5%CHF 154.07CHF 113.63CHF 135.0017

Analyst Forecast: Target price is lower than the current share price.

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