NYSE · Technology · Information Technology Services · USA
International Business Machines Corp is a mega cap company (market value over $200 billion) in the Information Technology Services industry.
International Business Machines Corporation provides hybrid cloud and artificial intelligence platforms to clients. The company operates through four segments: Software, offering cloud and AI capabilities; Consulting, delivering technology and business expertise; Infrastructure, providing server and storage solutions; and Financing, facilitating client acquisition of technology products and services.
From its FY2025 annual report (Form 10-K)
Intrinsic value, DCF valuation, financial health and value investing analysis for the International Business Machines Corp stock.
Fairly valued: intrinsic value $225.45 per share, market price $236.39, margin of safety -4.9% (as of 2026-10-19).
Discounting its cash flows at 8.6% (average of 3 methods) values the shares at $225.45; the price of $236.39 is 5% above that value, and 77% of that value comes from beyond year five.
Leak Score: 61/100 on 11 of 12 signals (Faint Leak).
17 more funds hold it; the full list is part of the paid plan.
All 79 Information Technology Services stocks
20 more in this industry show a wider margin of safety.
IBM is fairly valued (as of the 2026-10-19 close). Discounting its cash flows at 8.6% (average of 3 methods) values the shares at $225.45; the price of $236.39 is 5% above that value, and 77% of that value comes from beyond year five.
$225.45 per share (as of the 2026-10-19 close), against a market price of $236.39. That is a margin of safety of -4.9%. The value is the average of the valuation methods that apply to this company, recomputed every night after the US close.
The price asks for roughly the growth the company has already delivered. No miracle needed, no discount either. Yearly sales growth the price needs: 5.3%. Yearly sales growth it has sustained: 3.9%.
61 out of 100, which we rate "Faint Leak", on 11 of 12 value investing signals.