(IBM) International Business - Ratings and Ratios
Software, Consulting, Infrastructure, Financing
IBM EPS (Earnings per Share)
IBM Revenue
Description: IBM International Business
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 | 268,492m |
| Sub-Industry | IT Consulting & Other Services |
| IPO / Inception | 1962-01-02 |
IBM Stock Ratings
| Growth Rating | 88.5% |
| Fundamental | 59.7% |
| Dividend Rating | 59.1% |
| Return 12m vs S&P 500 | 6.71% |
| Analyst Rating | 3.55 of 5 |
IBM Dividends
| Dividend Yield 12m | 2.39% |
| Yield on Cost 5y | 6.93% |
| Annual Growth 5y | 1.75% |
| Payout Consistency | 97.3% |
| Payout Ratio | 63.1% |
IBM Growth Ratios
| Growth Correlation 3m | 48.9% |
| Growth Correlation 12m | 74.7% |
| Growth Correlation 5y | 94.7% |
| CAGR 5y | 37.44% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.89 |
| CAGR/Mean DD 3y (Pain Ratio) | 6.18 |
| Sharpe Ratio 12m | 0.71 |
| Alpha | 10.90 |
| Beta | 0.724 |
| Volatility | 23.84% |
| Current Volume | 2647.1k |
| Average Volume 20d | 4912.4k |
| Stop Loss | 272.1 (-3.1%) |
| Signal | 0.60 |
Piotroski VR‑10 (Strict, 0-10) 4.5
| Net Income (5.83b TTM) > 0 and > 6% of Revenue (6% = 3.84b TTM) |
| FCFTA 0.08 (>2.0%) and ΔFCFTA -1.17pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -5.42% (prev 5.85%; Δ -11.28pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.09 (>3.0%) and CFO 13.28b > Net Income 5.83b (YES >=105%, WARN >=100%) |
| Net Debt (55.78b) to EBITDA (12.90b) ratio: 4.32 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.91 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (946.7m) change vs 12m ago 1.32% (target <= -2.0% for YES) |
| Gross Margin 57.57% (prev 56.09%; Δ 1.48pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 45.35% (prev 46.59%; Δ -1.24pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 4.44 (EBITDA TTM 12.90b / Interest Expense TTM 1.82b) >= 6 (WARN >= 3) |
Altman Z'' 5.27
| (A) -0.02 = (Total Current Assets 34.25b - Total Current Liabilities 37.73b) / Total Assets 148.59b |
| (B) 1.02 = Retained Earnings (Balance) 151.37b / Total Assets 148.59b |
| warn (B) unusual magnitude: 1.02 — check mapping/units |
| (C) 0.06 = EBIT TTM 8.08b / Avg Total Assets 141.22b |
| (D) 1.63 = Book Value of Equity 197.72b / Total Liabilities 121.00b |
| Total Rating: 5.27 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 59.69
| 1. Piotroski 4.50pt = -0.50 |
| 2. FCF Yield 3.64% = 1.82 |
| 3. FCF Margin 18.44% = 4.61 |
| 4. Debt/Equity 2.46 = 0.06 |
| 5. Debt/Ebitda 4.32 = -2.50 |
| 6. ROIC - WACC (= 0.85)% = 1.06 |
| 7. RoE 21.98% = 1.83 |
| 8. Rev. Trend 33.00% = 2.48 |
| 9. EPS Trend 16.63% = 0.83 |
What is the price of IBM shares?
Over the past week, the price has changed by -3.01%, over one month by +9.57%, over three months by -0.02% and over the past year by +23.92%.
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 342.41 USD . This means that IBM is currently undervalued and has a potential upside of +21.96% (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 | 282.8 | 0.7% |
| Analysts Target Price | 282.8 | 0.7% |
| ValueRay Target Price | 376.9 | 34.2% |
Last update: 2025-10-11 05:02
IBM Fundamental Data Overview
P/E Trailing = 46.4887
P/E Forward = 23.9234
P/S = 4.1926
P/B = 9.709
P/EG = 1.735
Beta = 0.724
Revenue TTM = 64.04b USD
EBIT TTM = 8.08b USD
EBITDA TTM = 12.90b USD
Long Term Debt = 55.22b USD (from longTermDebt, last quarter)
Short Term Debt = 9.77b USD (from shortTermDebt, last quarter)
Debt = 67.72b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 55.78b USD (from netDebt column, last quarter)
Enterprise Value = 324.27b USD (268.49b + Debt 67.72b - CCE 11.94b)
Interest Coverage Ratio = 4.44 (Ebit TTM 8.08b / Interest Expense TTM 1.82b)
FCF Yield = 3.64% (FCF TTM 11.81b / Enterprise Value 324.27b)
FCF Margin = 18.44% (FCF TTM 11.81b / Revenue TTM 64.04b)
Net Margin = 9.11% (Net Income TTM 5.83b / Revenue TTM 64.04b)
Gross Margin = 57.57% ((Revenue TTM 64.04b - Cost of Revenue TTM 27.17b) / Revenue TTM)
Gross Margin QoQ = 58.76% (prev 55.23%)
Tobins Q-Ratio = 2.18 (Enterprise Value 324.27b / Total Assets 148.59b)
Interest Expense / Debt = 0.75% (Interest Expense 510.0m / Debt 67.72b)
Taxrate = 15.56% (404.0m / 2.60b)
NOPAT = 6.82b (EBIT 8.08b * (1 - 15.56%))
Current Ratio = 0.91 (Total Current Assets 34.25b / Total Current Liabilities 37.73b)
Debt / Equity = 2.46 (Debt 67.72b / totalStockholderEquity, last quarter 27.51b)
Debt / EBITDA = 4.32 (Net Debt 55.78b / EBITDA 12.90b)
Debt / FCF = 4.72 (Net Debt 55.78b / FCF TTM 11.81b)
Total Stockholder Equity = 26.54b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.93% (Net Income 5.83b / Total Assets 148.59b)
RoE = 21.98% (Net Income TTM 5.83b / Total Stockholder Equity 26.54b)
RoCE = 9.88% (EBIT 8.08b / Capital Employed (Equity 26.54b + L.T.Debt 55.22b))
RoIC = 7.91% (NOPAT 6.82b / Invested Capital 86.29b)
WACC = 7.06% (E(268.49b)/V(336.21b) * Re(8.68%) + D(67.72b)/V(336.21b) * Rd(0.75%) * (1-Tc(0.16)))
Discount Rate = 8.68% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 1.04%
[DCF Debug] Terminal Value 76.51% ; FCFE base≈11.97b ; Y1≈12.36b ; Y5≈14.00b
Fair Price DCF = 235.0 (DCF Value 218.89b / Shares Outstanding 931.5m; 5y FCF grow 3.38% → 3.0% )
EPS Correlation: 16.63 | EPS CAGR: 17.19% | SUE: 2.21 | # QB: 3
Revenue Correlation: 33.00 | Revenue CAGR: 6.97% | SUE: 1.23 | # QB: 1
Additional Sources for IBM Stock
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