International Business Machines Corporation

SWX:IBM Stock Report

Market Cap: CHF 223.8b

International Business Machines Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 (CHF240.4) is trading below our estimate of fair value (CHF244.55)

Significantly Below Fair Value: IBM is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Key metric: As IBM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IBM. This is calculated by dividing IBM's market cap by their current earnings.
What is IBM's PE Ratio?
PE Ratio35.5x
EarningsUS$7.92b
Market CapUS$281.34b

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 Average23.6x
ACN Accenture
22x8.66%US$166.1b
TCS Tata Consultancy Services
24x6.57%₹11.9t
INFY Infosys
23.2x5.07%₹6.8t
HCLTECH HCL Technologies
25.1x8.07%₹4.4t
IBM International Business Machines
35.5x9.49%CHF 281.3b

Price-To-Earnings vs Peers: IBM is expensive based on its Price-To-Earnings Ratio (35.5x) compared to the peer average (23.6x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IBM 35.5xIndustry Avg. 19.2xNo. of Companies27PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IBM is expensive based on its Price-To-Earnings Ratio (35.5x) compared to the European IT industry average (19.2x).

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 Ratio35.5x
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 240.40
CHF 233.99
-2.66%
15.19%CHF 286.63CHF 157.65n/a19
Dec ’26n/a
CHF 234.95
0%
15.41%CHF 290.77CHF 159.92n/a18
Nov ’26n/a
CHF 231.01
0%
15.35%CHF 281.63CHF 159.32n/a18
Oct ’26n/a
CHF 225.01
0%
15.39%CHF 280.02CHF 158.41n/a19
Sep ’26n/a
CHF 225.41
0%
15.81%CHF 280.44CHF 158.65n/a18
Aug ’26n/a
CHF 229.29
0%
15.38%CHF 284.81CHF 161.12n/a19
Jul ’26n/a
CHF 206.03
0%
16.35%CHF 257.52CHF 134.70n/a20
Jun ’26n/a
CHF 208.76
0%
13.62%CHF 248.25CHF 140.68n/a20
May ’26n/a
CHF 208.91
0%
13.50%CHF 248.87CHF 141.03n/a20
Apr ’26n/a
CHF 226.17
0%
15.54%CHF 283.04CHF 141.52n/a19
Mar ’26n/a
CHF 229.78
0%
15.77%CHF 288.90CHF 144.45n/a19
Feb ’26n/a
CHF 217.74
0%
18.24%CHF 264.11CHF 131.23n/a17
Jan ’26n/a
CHF 194.17
0%
18.12%CHF 232.51CHF 124.30n/a17
Dec ’25n/a
CHF 186.49
0%
18.32%CHF 226.36CHF 121.01n/a18
Nov ’25n/a
CHF 186.49
0%
18.32%CHF 226.36CHF 121.01n/a18
Oct ’25n/a
CHF 166.49
0%
15.14%CHF 211.56CHF 117.62n/a18
Sep ’25n/a
CHF 161.15
0%
13.69%CHF 189.79CHF 111.14n/a19
Aug ’25CHF 135.00
CHF 163.59
+21.18%
14.24%CHF 194.84CHF 114.10n/a19
Jul ’25CHF 135.00
CHF 160.60
+18.96%
13.44%CHF 192.01CHF 116.10n/a19
Jun ’25CHF 135.00
CHF 163.14
+20.85%
13.95%CHF 194.61CHF 117.67n/a18
May ’25CHF 135.00
CHF 168.47
+24.79%
12.91%CHF 197.62CHF 119.49n/a18
Apr ’25CHF 135.00
CHF 168.11
+24.52%
15.64%CHF 202.53CHF 113.02n/a18
Mar ’25CHF 135.00
CHF 160.26
+18.71%
15.25%CHF 198.41CHF 110.72n/a19
Feb ’25CHF 135.00
CHF 153.11
+13.41%
16.31%CHF 192.13CHF 107.21n/a19
Jan ’25CHF 135.00
CHF 127.50
-5.56%
14.88%CHF 176.63CHF 92.52n/a17
Dec ’24CHF 135.00
CHF 131.71
-2.44%
11.21%CHF 160.93CHF 98.89n/a16
CHF 234.74
Fair Value
2.4% overvalued intrinsic discount
19
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/12/20 16:35
End of Day Share Price 2025/12/19 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

International Business Machines Corporation is covered by 54 analysts. 21 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James KelleherArgus Research Company
Benjamin ReitzesBarclays
Josep BoriBerenberg