International Business Machines (IBM) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
International Business Machines stock (IBM) is currently trading at $250.37. International Business Machines PE ratio is 22.37. International Business Machines PS ratio (Price-to-Sales) is 3.46. Analyst consensus price target for IBM is $318.34. WallStSmart rates IBM as Moderate Buy.
International Business Machines (IBM) stock price prediction for 2030: Base case $253.73. Bull case $317.16. Bear case $190.30. See full IBM 2030 price forecast and methodology on WallStSmart.
- IBM PE ratio analysis and historical PE chart
- IBM PS ratio (Price-to-Sales) history and trend
- IBM intrinsic value — DCF, Graham Number, EPV models
- IBM stock price prediction 2025 2026 2027 2028 2029 2030
- IBM fair value vs current price
- IBM insider transactions and insider buying
- Is IBM undervalued or overvalued?
- International Business Machines financial analysis — revenue, earnings, cash flow
- IBM Piotroski F-Score and Altman Z-Score
- IBM analyst price target and Smart Rating
International Business Machines
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IBM Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · International Business Machines (IBM)
IBM trades at a significant discount to its Graham intrinsic value of $521.35, offering a 52% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
International Business Machines (IBM) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, operating margin. Concerns around price/book. Overall metrics suggest strong investment potential with favorable risk/reward.
International Business Machines (IBM) Key Strengths (6)
Mega-cap company, among the largest in the world
Every $100 of shareholder equity generates $35 in profit
Earnings per share surging 89.90% year-over-year
Strong operational efficiency: $25 kept per $100 revenue
Strong profitability: $16 kept per $100 revenue
65.71% held by institutions, strong professional interest
International Business Machines (IBM) Areas to Watch (4)
Very expensive at 7.1x book value
Paying a premium for growth, expensive relative to earnings expansion
Revenue is fairly priced at 3.46x sales
Solid revenue growth at 12.20% per year
International Business Machines (IBM) Detailed Analysis Report
Overall Assessment
This company scores 70/100 in our Smart Analysis, earning a B- grade. Out of 10 metrics analyzed, 6 register as strengths (avg 9.0/10) while 4 fall into concern territory (avg 4.5/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Market Cap, Return on Equity, EPS Growth. Profitability is solid with Return on Equity at 35.20%, Operating Margin at 24.80%, Profit Margin at 15.70%. Growth metrics are encouraging with EPS Growth at 89.90%.
The Bear Case
The primary concerns are Price/Book, PEG Ratio, Price/Sales. Some valuation metrics including PEG Ratio (2.31), Price/Sales (3.46), Price/Book (7.08) suggest expensive pricing. Growth concerns include Revenue Growth at 12.20%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Book improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 35.20% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 12.20% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
The combination of Market Cap and Return on Equity makes a compelling case at current levels. The key risk is Price/Book, but the overall fundamental picture is positive with a clear path to maintaining or improving the current B- grade.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
WallStSmart Analysis Synopsis
Data-driven financial summary for International Business Machines (IBM) · TECHNOLOGY › INFORMATION TECHNOLOGY SERVICES
The Big Picture
International Business Machines is a mature, profitable business with steady cash generation. Revenue reached 67.5B with 12% growth year-over-year. Profit margins of 15.7% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 3520.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 3.1B in free cash flow and 4.0B in operating cash flow. Earnings are translating into actual cash generation.
Debt-to-equity ratio of 2.06 is elevated. High leverage amplifies both gains and losses and increases financial risk.
What to Watch Next
Debt management: total debt of 67.2B is significantly higher than cash (13.6B). Monitor refinancing risk.
Sector dynamics: monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive moves, and regulatory changes that could impact International Business Machines.
Bottom Line
International Business Machines is a well-established business delivering consistent profitability with 15.7% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
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About International Business Machines(IBM)
NYSE
TECHNOLOGY
INFORMATION TECHNOLOGY SERVICE...
USA
International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.