Is the price fair?
What IBM's price assumes
IBM trades at 20.4× earnings against 19.4× for the median Information Technology Services name, more expensive than its own group.
20.4
Trailing P/E · Information Technology Services median 19.4 · 1.05× the median: the market pays up for this one
- Price / sales
- 3.32
Price / sales · as of 2026-Q1
- Free cash flow yield
- 5.9%
Free cash flow yield · Information Technology Services median 12%
- Growth the price implies
- +3.5%
Growth the price implies · The price pays for +3.5% free cash flow growth a year for a decade; the business has delivered +8.2% a year over the last three.
Details›
- Price / book2026-Q1
- 6.95
- EV / sales2026-Q1
- 4.00
- Technology median P/E376 names
- 37.0
- Information Technology Services median P/E40 names
- 19.4
- Free cash flow, trailing twelve months
- $13.8B
- Market capitalisation
- $234.1B
- 3-year revenue growth
- +4.5%
- 3-year free cash flow growth
- +8.2%
| Method | Per share |
|---|---|
| Its own P/E history, lower quartile | $125.79 |
| Its own P/E history, median | $207.65 |
| Its own P/E history, upper quartile | $355.52 |
| 52-week range | $206.15 – $329.23 |
| Today | $229.92 |
Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.
Information Technology Services
Ranks #6 of 37 by Smart Score