International Business Machines Corporation (IBM) Stock Analysis
Over the past 10 years, International Business Machines (IBM) earnings per share (EPS) declined 1.7% a year, revenue declined 1.9% a year and free cash flow declined 0.8% a year, with an average return on invested capital (ROIC) of 8.5%. IBM stock trades at $232.14, a P/E of 19.3, below its historical average of 34.6. Analysts' average 12-month price target is $255.50 (+10.1%).
International Business Machines Corporation (IBM) delivers comprehensive technology solutions and services across the globe. The company's operations are structured into four primary segments: Software, Consulting, Infrastructure, and Financing.
Exhibit A Growth Dossier
| Metric | 10yr | 5yr | 1yr | Grade |
|---|---|---|---|---|
| Book Value/Share GrowthBV/S | 9.0% | 8.4% | 24.5% | A- |
| EPS GrowthEPS | -1.7% | 12.6% | 13.1% | C+ |
| Revenue GrowthRevenue | -1.9% | 4.1% | 7.9% | C- |
| Cash Flow GrowthCash Flow | -0.8% | -4.2% | 15.4% | C- |
| ROICROIC | 8.5% | 8.3% | 10.4% | B |
Exhibit B Valuation Ledger
- Current EPS
- $12.01
- Historical Avg P/E
- 34.6
- Future P/E (used for sticker price)
- Projected EPS (10yr)
- Sticker Price (10yr)
- Price for 15% Annual Return
- Expected Annual Return
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Not investment advice — a structured read of historical fundamentals, not a forecast or recommendation. Always do your own research.
Exhibit C Raw Data (last 10 years)
| Metric | Trend | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Book Value / ShareBV/S | $14.51 | $19.03 | $18.77 | $18.33 | $23.34 | $22.97 | $20.89 | $24.05 | $24.44 | $29.14 | $34.41 | $36.16 | |
| Basic EPSEPS | $13.48 | $12.43 | $6.17 | $9.57 | $10.63 | $6.28 | $6.41 | $1.82 | $8.23 | $6.53 | $11.36 | $12.01 | |
| RevenueRevenue | $81,742,000,000 | $79,920,000,000 | $79,139,000,000 | $79,591,000,000 | $57,714,000,000 | $55,179,000,000 | $57,351,000,000 | $60,530,000,000 | $61,860,000,000 | $62,753,000,000 | $67,536,000,000 | $69,097,000,000 | |
| Free Cash FlowCash Flow | $13,104,000,000 | $12,934,000,000 | $12,951,000,000 | $11,283,000,000 | $11,863,000,000 | $14,967,000,000 | $10,028,000,000 | $8,463,000,000 | $12,121,000,000 | $11,760,000,000 | $12,102,000,000 | $13,631,000,000 | |
| ROIC (%)ROIC | 16.7% | 15.9% | 7.0% | 10.7% | 6.0% | 3.8% | 6.3% | 8.1% | 7.8% | 9.2% | 10.4% | — |
The exact underlying data used to compute the growth rates and grades above. The highlighted TTM column is the trailing twelve months through the most recently reported quarter.
Ticker INVESTigator Price Target
Analyst Data
Price Target
Where the stock trades today vs. the range of 12-month price targets from covering analysts.
51 firms rate it — 1 strong buy, 23 buy, 22 hold, 5 sell · Most recent Oct 2026
IBM Stock FAQ
What is IBM's stock price target?
The average 12-month analyst price target for IBM is $255.50, with a range of $175.00 to $350.00. That is +10.1% from the current price of $232.14.
Do analysts rate IBM a buy?
Opinion is mixed. Of 51 firms covering International Business Machines, the ratings are 24 buy or strong buy, 22 hold and 5 sell or strong sell.
How fast is International Business Machines growing?
Annual growth rates for IBM. EPS: -1.7% over 10 years, 12.6% over 5 years, 13.1% over 1 year. Revenue: -1.9% over 10 years, 4.1% over 5 years, 7.9% over 1 year. Free cash flow: -0.8% over 10 years, -4.2% over 5 years, 15.4% over 1 year. Book value per share: 9.0% over 10 years, 8.4% over 5 years, 24.5% over 1 year.
What is IBM's ROIC?
International Business Machines' return on invested capital (ROIC) was 10.4% in fiscal 2025. Its 10-year average ROIC is 8.5%. ROIC above 10% is generally a sign of a business with a durable competitive advantage.
What is IBM's P/E ratio?
IBM's current P/E ratio is 19.3, compared with a historical average of 34.6. Trailing earnings per share are $12.01.
What is International Business Machines' market cap and stock price?
IBM last traded at $232.14 as of October 19, 2026. Its 52-week range is $199.19 to $332.46. International Business Machines has a market cap of $218.71B.
Exhibit D Related Coverage
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Data as of October 19, 2026. Findings are derived from historical fundamentals — not a forecast, not advice. Cross-examine before you invest.
Grades are produced by Ticker INVESTigator's own model from public financial data and are for informational and educational purposes only. They are not investment advice or a recommendation to buy or sell any security. Do your own research.