International Business Machines Corporation (IBM)

DCF Valuation · Technology · Information Technology Services

Valuation as at 2026-08-14 · see also the S&P 500 Most Undervalued screen

About International Business Machines Corporation

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

International Business Machines Corporation IBM

Technology · Information Technology Services

Price
$237.14
Market Cap
$223.42B
Free Cash Flow
$12.05B
Beta
0.70
P/E (TTM)
21.1x
52-Week Range
$199.19–$332.46

International Business Machines Corporation's price & financial trends

Each card is labelled with its own reporting period — quarterly where Yahoo provides it for this market, annual otherwise.

Data as at 2026-08-14

Share price · last 2 years

$237.14 +17% vs 2024-08
S&P 500 $202.13$255.70$294.78$308.58$230.98$237.14 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per quarter

$2.27 -2% vs Q2 '25
$2.31$1.84$5.88$1.28$2.27Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Free cash flow Per quarter

$2.21B +67% vs Q2 '25
$1.33B$2.67B$3.49B$4.78B$2.21BQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Dividend per share Per quarter

$1.67 +1% vs Q2 '25
$1.65$1.65$1.65$1.66$1.67Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Value investing scale · Buffett · Dalio · Graham

Partial Fit
11 / 20 combined score

See the full Buffett, Dalio & Graham breakdown for IBM →

Intrinsic value estimate · 5-year forecast

BEAR
$138.93
vs current $237.14
-41.4% ❌ Overvalued
BASE
$178.33
vs current $237.14
-24.8% ❌ Overvalued
BULL
$237.61
vs current $237.14
+0.2% ⚠️ Fairly Valued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Starting free cash flow
$12.05B
Reported free cash flow (Yahoo)
Risk-free rate
4.68% ● LIVE
Live 10-yr govt bond
Beta
0.70
Direct from Yahoo
Equity risk premium
5.50%
Market-specific seed
Cost of debt
5.83%
Synthetic rating A, ICR 6.5x
Tax rate
25.00%
Estimated default
Capital structure
E 77% / D 23%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth-0.4%-0.3%-0.1%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)8.61%7.61%6.61%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.68% + 0.70 × 5.50% = 8.56% · WACC = weighted by 77%/23% capital structure

These numbers come from running International Business Machines Corporation's cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or IBM's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with IBM →

More S&P 500 stocks we've valued

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-08-14 from Yahoo Finance data, using the same engine as the full DCF tool and the S&P 500 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is International Business Machines Corporation (IBM) undervalued?

The Base-case DCF estimates intrinsic value at $178.33 vs a price of $237.14 on 2026-08-14 — a -24.8% margin, so the Base case reads overvalued. This is a mechanical output, not advice.