Fidelity National Information Services Inc vs International Business Machines Corp

Fidelity National Information Services Inc (FIS) is undervalued and International Business Machines Corp (IBM) is fairly valued.

Against our estimates of intrinsic value, FIS trades at the wider discount: a margin of safety of +71%, against -5% for IBM.

Values as of the 22 Sept 2026 close.

Fidelity National Information Services Inc (FIS)

Discounting its cash flows at 7.4% (average of 3 methods) values the shares at $121.43; the price of $34.96 is 71% below that value, and 81% of that value comes from beyond year five.

Leak Score 58/100 on 8 of 12 signals

International Business Machines Corp (IBM)

Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $220.67; the price of $231.38 is 5% above that value, and 78% of that value comes from beyond year five.

Leak Score 65/100 on 9 of 12 signals

MetricFISIBM
VerdictUndervaluedFairly valued
Price$34.96$231.38
Intrinsic value$121.43$220.67
Margin of safety+71%-5%
Leak Score58/100 (8/12)65/100 (9/12)
Market cap$18.0B$218.0B
Revenue growth, 5 years-3.2%4.1%
Operating margin23.0%20.9%
Net margin27.6%15.5%
Return on equity22.3%34.5%
Debt to equity1.331.89
P/E5.4x20.5x
Forward P/E5.2x17.6x
P/B1.1x6.3x
Dividend yield5.2%2.9%

All stocks in Information Technology Services