International Business Machines Corporation

BATS-CHIXE:IBMD Stock Report

Market Cap: €199.8b

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 (€212.85) is trading below our estimate of fair value (€274.46)

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 Ratio32.3x
EarningsUS$6.37b
Market CapUS$205.87b

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 Average21.6x
SCT Softcat
25.4x8.6%UK£3.0b
CCC Computacenter
13.2x6.4%UK£2.2b
KNOS Kainos Group
18.6x1.5%UK£968.3m
ACN Accenture
29.2x8.5%US$221.3b
IBMD International Business Machines
32.3x10.3%€205.9b

Price-To-Earnings vs Peers: IBMD is expensive based on its Price-To-Earnings Ratio (32.3x) compared to the peer average (21.6x).

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 Companies26PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IBMD is expensive based on its Price-To-Earnings Ratio (32.3x) compared to the European IT industry average (18.3x).

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 Ratio32.3x
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€212.85
€210.98
-0.9%
18.1%€252.30€134.89n/a17
Dec ’25n/a
€202.17
0%
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€99.64€212.9017
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

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 Analysis2025/01/05 04:12
End of Day Share Price 2025/01/03 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

International Business Machines Corporation is covered by 72 analysts. 18 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
Josep BoriAtlantic Equities LLP
Ishan MajumdarBaptista Research