International Business Machines Corporation

BATS-CHIXE:IBMD Stock Report

Market Cap: €198.0b

International Business Machines Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 IBMD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IBMD (€207.7) is trading below our estimate of fair value (€301.15)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IBMD. This is calculated by dividing IBMD's market cap by their current earnings.
What is IBMD's PE Ratio?
PE Ratio32.4x
EarningsUS$6.37b
Market CapUS$206.17b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IBMD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.9x
SCT Softcat
26.8x8.6%UK£3.2b
CCC Computacenter
13.7x7.0%UK£2.3b
KNOS Kainos Group
20.1x1.7%UK£1.0b
ACN Accenture
30.8x9.5%US$224.1b
IBMD International Business Machines
32.4x10.5%€206.2b

Price-To-Earnings vs Peers: IBMD is expensive based on its Price-To-Earnings Ratio (32.4x) compared to the peer average (22.9x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
No. of Companies27PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IBMD is expensive based on its Price-To-Earnings Ratio (32.4x) compared to the European IT industry average (17.9x).

Price to Earnings Ratio vs Fair Ratio

What is IBMD'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.

IBMD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate IBMD'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 IBMD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€207.70
€202.17
-2.7%
18.3%€245.39€131.19n/a18
Nov ’25€193.26
€197.67
+2.3%
18.3%€239.93€128.27n/a18
Oct ’25€198.86
€177.73
-10.6%
15.1%€225.85€125.57n/a18
Sep ’25€180.30
€169.42
-6.0%
13.7%€199.53€116.84n/a19
Aug ’25€177.22
€172.13
-2.9%
14.2%€205.02€120.06n/a19
Jul ’25€163.86
€167.49
+2.2%
13.4%€200.25€121.08n/a19
Jun ’25€153.24
€167.42
+9.3%
13.9%€199.71€120.76n/a18
May ’25€155.30
€171.43
+10.4%
12.9%€201.09€121.59n/a18
Apr ’25€174.50
€171.67
-1.6%
15.6%€206.82€115.41n/a18
Mar ’25€171.90
€168.65
-1.9%
15.2%€208.79€116.51n/a19
Feb ’25€172.10
€164.23
-4.6%
16.3%€206.08€115.00n/a19
Jan ’25€146.70
€137.31
-6.4%
14.9%€190.22€99.64n/a17
Dec ’24€146.85
€136.63
-7.0%
11.2%€166.94€102.59n/a16
Nov ’24€135.10
€138.41
+2.4%
11.3%€169.55€104.19€193.2616
Oct ’24€138.70
€137.78
-0.7%
12.0%€176.36€103.19€198.8616
Sep ’24€136.25
€132.49
-2.8%
10.3%€160.49€100.88€180.3015
Aug ’24€129.90
€130.36
+0.4%
10.0%€157.75€99.15€177.2216
Jul ’24n/a
€129.08
0%
8.4%€150.06€101.89€163.8614
Jun ’24n/a
€126.14
0%
8.3%€147.24€99.98€153.2414
May ’24€113.23
€126.60
+11.8%
8.3%€147.02€99.83€155.3014
Apr ’24n/a
€134.57
0%
9.0%€153.91€102.61€174.5015
Mar ’24n/a
€131.69
0%
8.9%€150.20€100.13€171.9015
Feb ’24n/a
€131.69
0%
8.9%€150.20€100.13€172.1015
Jan ’24n/a
€134.43
0%
9.2%€157.29€105.82€146.7015
Dec ’23n/a
€140.82
0%
8.5%€160.53€111.37€146.8515
Nov ’23n/a
€140.82
0%
8.5%€160.53€111.37€135.1015

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

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