(IBM) International Business - Ratings and Ratios
Software, Consulting, Infrastructure, Financing
IBM EPS (Earnings per Share)
IBM Revenue
| Risk via 10d forecast | |
|---|---|
| Volatility | 28.9% |
| Value at Risk 5%th | 45.0% |
| Relative Tail Risk | -8.54% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.32 |
| Alpha | 37.39 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.469 |
| Beta | 0.732 |
| Beta Downside | 0.850 |
| Drawdowns 3y | |
|---|---|
| Max DD | 19.82% |
| Mean DD | 6.11% |
| Median DD | 4.79% |
Description: IBM International Business September 24, 2025
International Business Machines Corporation (NYSE: IBM) delivers integrated technology solutions across five global regions through four operating segments: Software, Consulting, Infrastructure, and Financing. The Software segment drives IBM’s hybrid-cloud and AI platform offerings, enabling customers to modernize applications, data, and environments; the Consulting segment blends strategy, experience design, technology, and operations expertise by industry; the Infrastructure segment supplies on-premises and cloud-based servers, storage, and lifecycle services for hybrid-cloud deployments; and the Financing segment provides leasing and loan solutions that help clients acquire IBM hardware, software, and services.
IBM’s ecosystem is reinforced by strategic alliances with major hyperscalers and enterprise vendors-including Amazon Web Services, Microsoft Azure, Google Cloud, Adobe, Salesforce, SAP, and Samsung Electronics-allowing it to embed its software stack into broader cloud marketplaces and co-sell AI-enabled solutions.
Key recent metrics illustrate the company’s trajectory: FY 2024 Q2 revenue reached $14.3 billion, with Software revenue up 19 % year-over-year driven by AI-powered offerings; operating margin stabilized around 6.2 %; and free cash flow generated $2.1 billion, supporting continued dividend payments and share-repurchase programs. The hybrid-cloud market is expanding at a 13 % CAGR, while enterprise AI spending is projected to grow ~ 22 % annually through 2027-both macro trends that underpin IBM’s growth narrative.
IBM’s legacy hardware business has been largely off-loaded through the 2021 spin-off of Kyndryl, sharpening focus on higher-margin software and services. R&D intensity remains high, with FY 2024 R&D spend of $6.5 billion (≈ 4.5 % of revenue), reflecting heavy investment in AI models (e.g., IBM Watson x) and next-generation Power10 processors.
For a deeper, data-driven valuation framework, you may find ValueRay’s analyst tools worth exploring.
IBM Stock Overview
| Market Cap in USD | 286,384m |
| Sub-Industry | IT Consulting & Other Services |
| IPO / Inception | 1962-01-02 |
| Return 12m vs S&P 500 | 30.9% |
| Analyst Rating | 3.55 of 5 |
IBM Dividends
| Dividend Yield | 2.20% |
| Yield on Cost 5y | 7.29% |
| Yield CAGR 5y | 1.75% |
| Payout Consistency | 97.3% |
| Payout Ratio | 61.2% |
IBM Growth Ratios
| CAGR 3y | 32.54% |
| CAGR/Max DD Calmar Ratio | 1.64 |
| CAGR/Mean DD Pain Ratio | 5.32 |
| Current Volume | 3590.1k |
| Average Volume | 5309.6k |
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income (7.91b TTM) > 0 and > 6% of Revenue (6% = 3.92b TTM) |
| FCFTA 0.09 (>2.0%) and ΔFCFTA 0.06pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -3.67% (prev 2.70%; Δ -6.37pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.09 (>3.0%) and CFO 13.48b > Net Income 7.91b (YES >=105%, WARN >=100%) |
| Net Debt (55.00b) to EBITDA (16.21b) ratio: 3.39 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.93 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (948.9m) change vs 12m ago 2.74% (target <= -2.0% for YES) |
| Gross Margin 58.16% (prev 56.53%; Δ 1.63pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 46.61% (prev 46.58%; Δ 0.03pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 6.05 (EBITDA TTM 16.21b / Interest Expense TTM 1.88b) >= 6 (WARN >= 3) |
Altman Z'' 5.58
| (A) -0.02 = (Total Current Assets 32.74b - Total Current Liabilities 35.14b) / Total Assets 146.31b |
| (B) 1.04 = Retained Earnings (Balance) 151.58b / Total Assets 146.31b |
| warn (B) unusual magnitude: 1.04 — check mapping/units |
| (C) 0.08 = EBIT TTM 11.37b / Avg Total Assets 140.33b |
| (D) 1.68 = Book Value of Equity 198.42b / Total Liabilities 118.32b |
| Total Rating: 5.58 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 63.16
| 1. Piotroski 6.0pt = 1.0 |
| 2. FCF Yield 3.86% = 1.93 |
| 3. FCF Margin 19.94% = 4.98 |
| 4. Debt/Equity 2.39 = 0.18 |
| 5. Debt/Ebitda 3.39 = -2.22 |
| 6. ROIC - WACC (= 2.10)% = 2.63 |
| 7. RoE 28.86% = 2.40 |
| 8. Rev. Trend 23.51% = 1.76 |
| 9. EPS Trend 9.76% = 0.49 |
What is the price of IBM shares?
Over the past week, the price has changed by +0.32%, over one month by +11.31%, over three months by +29.63% and over the past year by +50.05%.
Is International Business a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of IBM is around 372.98 USD . This means that IBM is currently undervalued and has a potential upside of +22.01% (Margin of Safety).
Is IBM a buy, sell or hold?
- Strong Buy: 8
- Buy: 2
- Hold: 8
- Sell: 2
- Strong Sell: 2
What are the forecasts/targets for the IBM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 287.1 | -6.1% |
| Analysts Target Price | 287.1 | -6.1% |
| ValueRay Target Price | 410.9 | 34.4% |
IBM Fundamental Data Overview November 09, 2025
P/E Trailing = 36.5173
P/E Forward = 23.9234
P/S = 4.3788
P/B = 9.709
P/EG = 1.735
Beta = 0.688
Revenue TTM = 65.40b USD
EBIT TTM = 11.37b USD
EBITDA TTM = 16.21b USD
Long Term Debt = 49.88b USD (from longTermDebt, last fiscal year)
Short Term Debt = 8.75b USD (from shortTermDebt, last quarter)
Debt = 66.57b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 55.00b USD (from netDebt column, last quarter)
Enterprise Value = 338.10b USD (286.38b + Debt 66.57b - CCE 14.86b)
Interest Coverage Ratio = 6.05 (Ebit TTM 11.37b / Interest Expense TTM 1.88b)
FCF Yield = 3.86% (FCF TTM 13.04b / Enterprise Value 338.10b)
FCF Margin = 19.94% (FCF TTM 13.04b / Revenue TTM 65.40b)
Net Margin = 12.09% (Net Income TTM 7.91b / Revenue TTM 65.40b)
Gross Margin = 58.16% ((Revenue TTM 65.40b - Cost of Revenue TTM 27.36b) / Revenue TTM)
Gross Margin QoQ = 58.73% (prev 58.76%)
Tobins Q-Ratio = 2.31 (Enterprise Value 338.10b / Total Assets 146.31b)
Interest Expense / Debt = 0.74% (Interest Expense 492.0m / Debt 66.57b)
Taxrate = 28.23% (686.0m / 2.43b)
NOPAT = 8.16b (EBIT 11.37b * (1 - 28.23%))
Current Ratio = 0.93 (Total Current Assets 32.74b / Total Current Liabilities 35.14b)
Debt / Equity = 2.39 (Debt 66.57b / totalStockholderEquity, last quarter 27.91b)
Debt / EBITDA = 3.39 (Net Debt 55.00b / EBITDA 16.21b)
Debt / FCF = 4.22 (Net Debt 55.00b / FCF TTM 13.04b)
Total Stockholder Equity = 27.40b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.40% (Net Income 7.91b / Total Assets 146.31b)
RoE = 28.86% (Net Income TTM 7.91b / Total Stockholder Equity 27.40b)
RoCE = 14.72% (EBIT 11.37b / Capital Employed (Equity 27.40b + L.T.Debt 49.88b))
RoIC = 9.27% (NOPAT 8.16b / Invested Capital 88.04b)
WACC = 7.17% (E(286.38b)/V(352.95b) * Re(8.71%) + D(66.57b)/V(352.95b) * Rd(0.74%) * (1-Tc(0.28)))
Discount Rate = 8.71% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 1.16%
[DCF Debug] Terminal Value 76.86% ; FCFE base≈12.58b ; Y1≈13.40b ; Y5≈16.13b
Fair Price DCF = 266.7 (DCF Value 249.34b / Shares Outstanding 934.7m; 5y FCF grow 7.24% → 3.0% )
EPS Correlation: 9.76 | EPS CAGR: -10.54% | SUE: 3.04 | # QB: 4
Revenue Correlation: 23.51 | Revenue CAGR: -0.79% | SUE: 0.74 | # QB: 0
Additional Sources for IBM Stock
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