(IBM) International Business - Ratings and Ratios
Software, Consulting, Infrastructure, Financing
Dividends
| Dividend Yield | 2.18% |
| Yield on Cost 5y | 6.92% |
| Yield CAGR 5y | 0.61% |
| Payout Consistency | 93.8% |
| Payout Ratio | 61.2% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 29.3% |
| Value at Risk 5%th | 44.4% |
| Relative Tail Risk | -8.04% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.01 |
| Alpha | 25.93 |
| CAGR/Max DD | 1.67 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.506 |
| Beta | 0.729 |
| Beta Downside | 0.838 |
| Drawdowns 3y | |
|---|---|
| Max DD | 19.82% |
| Mean DD | 6.18% |
| Median DD | 5.05% |
Description: IBM International Business December 02, 2025
International Business Machines Corp. (IBM) delivers integrated technology solutions across the Americas, Europe, Middle East, Africa, and Asia-Pacific through four operating segments: Software, Consulting, Infrastructure, and Financing.
The Software segment centers on hybrid-cloud and AI platforms that enable clients to modernize applications, data, and environments; in FY 2023, cloud-related revenue grew ~12% YoY, reflecting strong demand for AI-enabled services.
IBM’s Consulting arm blends strategy, experience design, technology, and operations expertise, targeting industry-specific digital transformations; the segment contributed roughly 22% of total revenue and benefits from the broader enterprise-IT spend rebound projected at 3-4% annual growth.
The Infrastructure segment offers on-premises and cloud-based servers, storage, and lifecycle services for hybrid-cloud deployments; its gross margin has been pressured by commoditization, prompting IBM to focus on higher-value edge-computing and Red Hat-driven offerings.
Through its Financing segment, IBM provides client and commercial financing to facilitate purchases of its hardware, software, and services, supporting a ~$2 billion loan portfolio that helps smooth revenue cycles.
Strategic alliances with hyperscalers and enterprise software leaders-including AWS, Microsoft Azure, Google Cloud, Adobe, Salesforce, SAP, and Samsung-expand IBM’s ecosystem reach and accelerate co-innovation on AI and hybrid-cloud solutions.
Key performance indicators to watch include FY 2024 revenue guidance (~$60 billion), AI-related software ARR growth, and R&D spend (≈$6 billion), which together drive the company’s ability to capture a larger share of the $1 trillion hybrid-cloud market.
For a deeper, data-driven assessment of IBM’s valuation dynamics, you might explore the analytical tools available on ValueRay.
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) 65.51
| 1. Piotroski 6.0pt |
| 2. FCF Yield 3.89% |
| 3. FCF Margin 19.94% |
| 4. Debt/Equity 2.39 |
| 5. Debt/Ebitda 3.39 |
| 6. ROIC - WACC (= 2.05)% |
| 7. RoE 28.86% |
| 8. Rev. Trend 47.98% |
| 9. EPS Trend 21.07% |
What is the price of IBM shares?
Over the past week, the price has changed by -0.21%, over one month by +0.93%, over three months by +24.59% and over the past year by +34.57%.
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 | 290.9 | -5.5% |
| Analysts Target Price | 290.9 | -5.5% |
| ValueRay Target Price | 407.8 | 32.4% |
IBM Fundamental Data Overview November 29, 2025
P/E Trailing = 36.0964
P/E Forward = 24.7525
P/S = 4.3335
P/B = 10.1566
P/EG = 2.08
Beta = 0.688
Revenue TTM = 65.40b USD
EBIT TTM = 11.37b USD
EBITDA TTM = 16.21b USD
Long Term Debt = 55.17b USD (from longTermDebt, last quarter)
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 = 335.14b USD (283.42b + Debt 66.57b - CCE 14.86b)
Interest Coverage Ratio = 6.05 (Ebit TTM 11.37b / Interest Expense TTM 1.88b)
FCF Yield = 3.89% (FCF TTM 13.04b / Enterprise Value 335.14b)
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 = 2.29 (Enterprise Value 335.14b / 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 = 13.77% (EBIT 11.37b / Capital Employed (Equity 27.40b + L.T.Debt 55.17b))
RoIC = 9.19% (NOPAT 8.16b / Invested Capital 88.78b)
WACC = 7.15% (E(283.42b)/V(349.99b) * Re(8.70%) + D(66.57b)/V(349.99b) * Rd(0.74%) * (1-Tc(0.28)))
Discount Rate = 8.70% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 1.16%
[DCF Debug] Terminal Value 76.90% ; FCFE base≈12.58b ; Y1≈13.40b ; Y5≈16.13b
Fair Price DCF = 267.2 (DCF Value 249.78b / Shares Outstanding 934.7m; 5y FCF grow 7.24% → 3.0% )
EPS Correlation: 21.07 | EPS CAGR: -6.06% | SUE: 3.04 | # QB: 4
Revenue Correlation: 47.98 | Revenue CAGR: 53.69% | SUE: 0.74 | # QB: 0
EPS next Quarter (2026-03-31): EPS=1.93 | Chg30d=+0.055 | Revisions Net=+2 | Analysts=14
EPS next Year (2026-12-31): EPS=12.18 | Chg30d=+0.273 | Revisions Net=+12 | Growth EPS=+7.2% | Growth Revenue=+4.6%
Additional Sources for IBM Stock
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Fund Manager Positions: Dataroma | Stockcircle