Skip to main content

International Business Machines Corporation (IBM) Fundamentals

As of May 23, 2026

TL;DR — International Business Machines Corporation (IBM) fundamentals as of May 23, 2026

International Business Machines Corporation (IBM) trades at a trailing P/E of 21.0x and a P/B of 6.82x. Return on equity is 32.5%, return on invested capital is 9.7%, and the company carries a debt-to-equity ratio of 2.06. The current ratio sits at 0.93, free cash flow yield is 5.5%, and the dividend yield is 271.0%. MIXED — passes most quality screens but at least one flag warrants a closer look.

For intrinsic value (DCF, owner earnings, Graham number) and the full 5-pillar score, see the IBM overview page.

Full Fundamentals Table

Every key indicator we track for IBM fundamentals, grouped by category. Industry median is shown where a sector classification is available.

MetricIBMTechnology medianWhat it measures
Revenue (TTM)View full statement-Trailing twelve-month total revenue
Net Income (TTM)View full statement-Bottom-line profit after taxes and interest
Free Cash Flow (TTM)View full statement-Cash from operations minus CapEx
EPS (TTM)N/A-Earnings per diluted share
ROE32.5%18%Return on Equity — net income / shareholder equity
ROA7.0%-Return on Assets — net income / total assets
ROIC9.7%-Return on Invested Capital — NOPAT / (debt + equity)
P/E (Trailing)21.0x28xPrice / earnings — how many years of profit to recoup price
P/B6.82x6.5xPrice / book value — premium over net assets
P/S3.30x-Price / sales — useful when earnings are noisy
EV/EBITDA16.0x-Enterprise value / EBITDA — capital-structure neutral
Debt / Equity2.060.40Leverage — lower = less reliance on debt
Current Ratio0.93-Current assets / current liabilities — short-term liquidity
Dividend Yield271.0%-Annual dividend / current price

5-Year Trend

Indexed revenue growth path for IBM over the past five fiscal years (base = 100). Used as a quick sanity check on whether the top line is compounding or stalling.

Trend indexed from 1-year revenue growth rate. Full statement available in the analyst tier.

Industry Comparison

Across Technology, the median company prints P/E around 28x, P/B near 6.5x, ROE close to 18%, and a debt-to-equity ratio of 0.4. IBM's reading on each metric is in the ratio table above — anything materially above the median valuation multiple deserves a thesis to justify the premium, anything materially below the median return-on-capital flags an operational gap.

Compare IBM side-by-side with sector peers in the Technology stock list.

Quality Triple Check

  • Piotroski F-Score

    Nine-point checklist for accounting quality and operational efficiency

    5/9

    FLAG

  • Beneish M-Score

    Earnings-manipulation detector — below -2.22 is healthy

    -2.62

    PASS

  • Altman Z-Score

    Bankruptcy-risk model — above 2.99 is "safe zone"

    3.25

    PASS

Verdict: MIXED — passes most quality screens but at least one flag warrants a closer look.

Next steps

Frequently asked about IBM fundamentals

What are the key fundamentals for International Business Machines Corporation (IBM)?

The core IBM fundamentals are P/E 21.0, ROE 32.5%, ROIC 9.7%, debt/equity 2.06, and dividend yield 271.0%. The complete ratio table on this page covers revenue, net income, FCF, EPS, ROA, P/B, P/S, EV/EBITDA, and current ratio.

How does IBM compare to its Technology peers?

The Technology sector median P/E is roughly 28x, ROE 18%, and D/E 0.4. IBM prints P/E 21.0, ROE 32.5%, and D/E 2.06. Use the Industry Comparison row in the ratio table for the full diff.

Does IBM pass the Quality Triple Check?

IBM passes 2 of 3 quality screens (Piotroski F-Score, Beneish M-Score, Altman Z-Score). Detailed verdict above.

How is "fundamentals" different from intrinsic value?

Fundamentals describe what the business looks like today: profit, cash flow, leverage, returns on capital. Intrinsic value uses those fundamentals as inputs to a DCF (or similar model) and discounts the future cash flows back to today. Use both — fundamentals tell you whether a business is healthy, intrinsic value tells you whether the price is fair.

How often does ValueMarkers update IBM fundamentals?

Cached financial statements refresh every 12 hours. The ratio table on this page is rebuilt every 6 hours via Next.js ISR, and the underlying FMP data refreshes on each new earnings release.

Weekly Stock Analysis - Free

5 undervalued stocks, fully modeled. Every Monday. No spam.

Cookie Preferences

We use cookies to analyze site usage and improve your experience. You can accept all, reject all, or customize your preferences.