International Business Machines (IBM)

Technology · Information Technology Services · S&P 500
$221.29 -0.13% on the day Market cap $215.4B 52-week range $199.19 to $332.46 Prices as of Oct 7, 2026

What the price implies

A reverse DCF: instead of guessing a fair value, it asks what growth today's price already assumes. How it works.

Free cash flow growth the price needs
3% a year for 10 years

At a market value of $215.4B, International Business Machines's free cash flow of $12.1B (fiscal 2025) would need to grow about 3% a year for the stock to be worth today's price. That is faster than the company has grown its free cash flow over the last 9 years.

Assumes a 9% discount rate and 3% growth after year 10, on free cash flow (operating cash flow minus capital spending) from International Business Machines's SEC filings. Change any assumption, or model revenue and margins instead, in the Modeling tab, or try your own numbers in the reverse DCF calculator.

Implied by the price3.5% a year
Free cash flow, last 9 years-1.2% a year
Revenue, same period-1.9% a year
Price to free cash flow17.8x

Fundamental grade

C

Five factors scored 1 to 9 from IBM's latest numbers, weighted into one grade. It describes the business, not whether the stock is a buy.

Valuation5
Profitability7
Growth2
Financial health1
Cash efficiency7

Key numbers

P/E (trailing)20.3x
P/E (forward)18.6x
Price / free cash flow18.6x
EV / EBITDA15.6x
Price / sales3.12x
Price / book6.55x
Revenue growth+1.1%
Operating margin—
Net margin15.5%
Return on equity31.1%
Dividend yield2.9%
Debt / equity3.41x

Results from SEC filings

Fiscal years, from International Business Machines's 10-K filings. The deep dive has 15+ years, quarters and every line.

Fiscal year20212022202320242025
Revenue$57.4B$60.5B$61.9B$62.8B$67.5B
Net income$5.7B$1.6B$7.5B$6.0B$10.6B
Free cash flow$10.7B$9.1B$12.7B$12.4B$12.1B
EPS (diluted)$6.35$1.80$8.14$6.43$11.17
Operating margin—————

Where the revenue comes from

Revenue by segments, fiscal 2025.

Software$30.0B44%
Consulting$21.1B31%
Infrastructure$15.7B23%
Financing$737M1%

Superinvestors who own IBM

From each investor's latest 13F filing (what a 13F shows). 10 of the investors we track hold it.

InvestorLast quarterValue% of portfolioQuarter
Cliff Asness
AQR Capital Management
Added $742M0.26%Q2 2026
Dodge & Cox
Dodge & Cox
Trimmed $13M0.01%Q2 2026
Joel Greenblatt
Gotham Asset Management
Added $11M0.03%Q2 2026
Hersh Cohen
ClearBridge Investments
Trimmed $8M0.01%Q2 2026
Mario Gabelli
GAMCO Investors
Trimmed $5M0.04%Q2 2026
Eric Marshall
Hodges Capital Management
Trimmed $3M0.19%Q2 2026
Murray Stahl
Horizon Kinetics LLC
Trimmed $1M0.01%Q2 2026
Boykin Curry
Eagle Capital Management
Held $759,2670.00%Q2 2026
Mark Boyar
Boyar Asset Management
Added $603,2820.35%Q2 2026
Thomas Kahn
Kahn Brothers Group
Held $345,3250.06%Q2 2026

Insider buying

Open-market purchases by International Business Machines's executives and directors in the last 12 months, from SEC Form 4 filings. What insider buying tells you.

DateInsiderSharesPriceValue
Mar 10, 2026 Ro Khanna
0$249.35—
Mar 10, 2026 Ro Khanna
0$249.35—
Mar 10, 2026 Lloyd Doggett
0$249.35—
Mar 10, 2026 Lloyd Doggett
0$249.35—
Feb 25, 2026 Michelle J Howard
50$237.83$11,892
Feb 25, 2026 Michael Miebach
434$233.33$101,265
Feb 24, 2026 Ro Khanna
0$229.34—
Feb 24, 2026 Ro Khanna
0$229.34—
Feb 2, 2026 Julia Letlow
0$314.56—
Feb 2, 2026 Julia Letlow
0$314.56—

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In the full deep dive

DCF fair value per share
Yearly return (IRR) at today's price
Growth implied by revenue and margins
15+ years of statements and quarters

Questions

What growth does International Business Machines's stock price imply?

At a market value of $215.4B, International Business Machines would need its free cash flow to grow about 3% a year for 10 years (discounted at 9%, 3% growth after that) to be worth today's price. Over the last 9 years its free cash flow grew -1% a year.

Are International Business Machines insiders buying the stock?

10 open-market insider purchases of IBM in the last 12 months, from SEC Form 4 filings.

Which superinvestors own International Business Machines?

10 of the superinvestors Investingly tracks hold IBM in their latest 13F, including Cliff Asness, Dodge & Cox, Joel Greenblatt.

Prices and ratios as of Oct 7, 2026; statements from SEC filings. Information only, not investment advice. Superinvestor holdings come from 13F filings, which are filed up to 45 days after each quarter ends.