International Business Machines Corp (IBM) is fairly valued and Wipro Ltd ADR (WIT) is slightly undervalued.
Against our estimates of intrinsic value, WIT trades at the wider discount: a margin of safety of +7%, against -5% for IBM.
Values as of the 19 Oct 2026 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.
Leak Score 61/100 on 11 of 12 signals
Discounting its cash flows at 9.5% (average of 3 methods) values the shares at $2.07; the price of $1.93 is 7% below that value, and 73% of that value comes from beyond year five.
Leak Score 55/100 on 11 of 12 signals
| Metric | IBM | WIT |
|---|---|---|
| Verdict | Fairly valued | Slightly undervalued |
| Price | $236.39 | $1.93 |
| Intrinsic value | $225.45 | $2.07 |
| Margin of safety | -5% | +7% |
| Leak Score | 61/100 (11/12) | 55/100 (11/12) |
| Market cap | $222.7B | $19.1B |
| Revenue growth, 5 years | 4.1% | 4.7% |
| Operating margin | 20.9% | 16.1% |
| Net margin | 15.5% | 13.6% |
| Return on equity | 34.5% | 16.3% |
| Debt to equity | 1.89 | 0.29 |
| P/E | 21.0x | 14.1x |
| Forward P/E | 18.0x | 13.4x |
| P/B | 6.5x | 2.4x |
| Dividend yield | 2.9% | 5.1% |