(IBM) International Business - Overview
Stock: Software, Consulting, Infrastructure, Financing
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 2.57% |
| Yield on Cost 5y | 8.73% |
| Yield CAGR 5y | 0.61% |
| Payout Consistency | 97.3% |
| Payout Ratio | 58.1% |
| Risk 5d forecast | |
|---|---|
| Volatility | 31.6% |
| Relative Tail Risk | -9.19% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.65 |
| Alpha | 3.69 |
| Character TTM | |
|---|---|
| Beta | 0.751 |
| Beta Downside | 0.842 |
| Drawdowns 3y | |
|---|---|
| Max DD | 19.82% |
| CAGR/Max DD | 1.76 |
Description: IBM International Business January 28, 2026
International Business Machines Corporation (IBM) operates globally across the Americas, Europe, the Middle East, Africa, and Asia-Pacific, organized into four segments: Software (hybrid cloud and AI platforms), Consulting (strategy, experience, technology, and operations services), Infrastructure (on-premises and cloud server/storage solutions with lifecycle services), and Financing (client and commercial financing for hardware, software, and services).
In IBM’s FY 2023 results, total revenue was $60.5 billion, a 1.2% YoY increase, driven primarily by a 9% growth in the Software segment’s hybrid cloud and AI offerings. Operating margin held at 13.1%, and free cash flow reached $6.2 billion, supporting a dividend payout of $6.64 per share for the year. The company’s Q2 2024 earnings preview indicated a continued 8% sequential rise in AI-related software bookings.
Key macro drivers for IBM include the accelerating enterprise adoption of AI, projected to grow at a 23% CAGR through 2028, and the sustained shift toward hybrid cloud architectures, which the IDC estimates will account for 70% of total cloud spend by 2026. IBM’s strategic alliances with hyperscalers such as AWS, Microsoft Azure, and Google Cloud, as well as software leaders like Adobe and Salesforce, are intended to capture a larger share of this expanding market.
For a deeper quantitative comparison of IBM’s valuation relative to peers, you may find ValueRay’s analytics useful.
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income: 10.59b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -0.49 > 1.0 |
| NWC/Revenue: -4.14% < 20% (prev 2.14%; Δ -6.28% < -1%) |
| CFO/TA 0.09 > 3% & CFO 13.19b > Net Income 10.59b |
| Net Debt (53.51b) to EBITDA (17.29b): 3.10 < 3 |
| Current Ratio: 0.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (952.4m) vs 12m ago 1.06% < -2% |
| Gross Margin: 58.81% > 18% (prev 0.57%; Δ 5824 % > 0.5%) |
| Asset Turnover: 46.73% > 50% (prev 45.74%; Δ 0.98% > 0%) |
| Interest Coverage Ratio: 6.34 > 6 (EBITDA TTM 17.29b / Interest Expense TTM 1.94b) |
Altman Z'' 5.58
| A: -0.02 (Total Current Assets 35.86b - Total Current Liabilities 38.66b) / Total Assets 151.88b |
| B: 1.02 (Retained Earnings 155.65b / Total Assets 151.88b) |
| C: 0.08 (EBIT TTM 12.27b / Avg Total Assets 144.53b) |
| D: 1.71 (Book Value of Equity 203.25b / Total Liabilities 119.14b) |
| Altman-Z'' Score: 5.58 = AAA |
Beneish M -2.86
| DSRI: 1.17 (Receivables 17.64b/14.01b, Revenue 67.53b/62.75b) |
| GMI: 0.96 (GM 58.81% / 56.65%) |
| AQI: 1.03 (AQ_t 0.70 / AQ_t-1 0.68) |
| SGI: 1.08 (Revenue 67.53b / 62.75b) |
| TATA: -0.02 (NI 10.59b - CFO 13.19b) / TA 151.88b) |
| Beneish M-Score: -2.86 (Cap -4..+1) = A |
What is the price of IBM shares?
Over the past week, the price has changed by -2.53%, over one month by -1.17%, over three months by -3.79% and over the past year by +21.00%.
Is IBM a buy, sell or hold?
- StrongBuy: 8
- Buy: 2
- Hold: 8
- Sell: 2
- StrongSell: 2
What are the forecasts/targets for the IBM price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 325 | 8.7% |
| Analysts Target Price | 325 | 8.7% |
| ValueRay Target Price | 395.6 | 32.3% |
IBM Fundamental Data Overview February 07, 2026
P/E Forward = 23.1481
P/S = 4.0123
P/B = 8.2757
P/EG = 2.4639
Revenue TTM = 67.53b USD
EBIT TTM = 12.27b USD
EBITDA TTM = 17.29b USD
Long Term Debt = 54.84b USD (from longTermDebt, last quarter)
Short Term Debt = 7.22b USD (from shortTermDebt, last quarter)
Debt = 67.15b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 53.51b USD (from netDebt column, last quarter)
Enterprise Value = 324.54b USD (270.97b + Debt 67.15b - CCE 13.59b)
Interest Coverage Ratio = 6.34 (Ebit TTM 12.27b / Interest Expense TTM 1.94b)
EV/FCF = 26.42x (Enterprise Value 324.54b / FCF TTM 12.28b)
FCF Yield = 3.79% (FCF TTM 12.28b / Enterprise Value 324.54b)
FCF Margin = 18.19% (FCF TTM 12.28b / Revenue TTM 67.53b)
Net Margin = 15.69% (Net Income TTM 10.59b / Revenue TTM 67.53b)
Gross Margin = 58.81% ((Revenue TTM 67.53b - Cost of Revenue TTM 27.82b) / Revenue TTM)
Gross Margin QoQ = 61.56% (prev 58.73%)
Tobins Q-Ratio = 2.14 (Enterprise Value 324.54b / Total Assets 151.88b)
Interest Expense / Debt = 0.71% (Interest Expense 478.0m / Debt 67.15b)
Taxrate = 21.0% (US default 21%)
NOPAT = 9.69b (EBIT 12.27b * (1 - 21.00%))
Current Ratio = 0.93 (Total Current Assets 35.86b / Total Current Liabilities 38.66b)
Debt / Equity = 2.06 (Debt 67.15b / totalStockholderEquity, last quarter 32.65b)
Debt / EBITDA = 3.10 (Net Debt 53.51b / EBITDA 17.29b)
Debt / FCF = 4.36 (Net Debt 53.51b / FCF TTM 12.28b)
Total Stockholder Equity = 28.74b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.33% (Net Income 10.59b / Total Assets 151.88b)
RoE = 36.86% (Net Income TTM 10.59b / Total Stockholder Equity 28.74b)
RoCE = 14.68% (EBIT 12.27b / Capital Employed (Equity 28.74b + L.T.Debt 54.84b))
RoIC = 10.65% (NOPAT 9.69b / Invested Capital 90.95b)
WACC = 7.07% (E(270.97b)/V(338.12b) * Re(8.68%) + D(67.15b)/V(338.12b) * Rd(0.71%) * (1-Tc(0.21)))
Discount Rate = 8.68% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 1.34%
[DCF Debug] Terminal Value 82.41% ; FCFF base≈12.07b ; Y1≈12.86b ; Y5≈15.45b
Fair Price DCF = 294.6 (EV 328.89b - Net Debt 53.51b = Equity 275.38b / Shares 934.7m; r=7.07% [WACC]; 5y FCF grow 7.24% → 2.90% )
EPS Correlation: 45.78 | EPS CAGR: 36.69% | SUE: 3.53 | # QB: 5
Revenue Correlation: 56.40 | Revenue CAGR: 9.11% | SUE: 2.95 | # QB: 1
EPS next Quarter (2026-03-31): EPS=1.81 | Chg30d=-0.125 | Revisions Net=-2 | Analysts=15
EPS current Year (2026-12-31): EPS=12.41 | Chg30d=+0.199 | Revisions Net=+3 | Growth EPS=+7.1% | Growth Revenue=+5.4%
EPS next Year (2027-12-31): EPS=13.42 | Chg30d=+0.456 | Revisions Net=+7 | Growth EPS=+8.1% | Growth Revenue=+4.3%