IBM
International Business Machines Corp
Price:  
242.09 
USD
Volume:  
3,129,807.00
United States | IT Services
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IBM Intrinsic Value

16.10 %
Upside

What is the intrinsic value of IBM?

As of 2025-08-23, the Intrinsic Value of International Business Machines Corp (IBM) is 281.11 USD. This IBM valuation is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 242.09 USD, the upside of International Business Machines Corp is 16.10%.

The range of the Intrinsic Value is 172.99 - 618.23 USD

Is IBM undervalued or overvalued?

Based on its market price of 242.09 USD and our intrinsic valuation, International Business Machines Corp (IBM) is undervalued by 16.10%.

242.09 USD
Stock Price
281.11 USD
Intrinsic Value
Intrinsic Value Details

IBM Intrinsic Value - Valuation Summary

Range Selected Upside
a
DCF (Growth 5y) 172.99 - 618.23 281.11 16.1%
DCF (Growth 10y) 241.11 - 770.19 370.25 52.9%
DCF (EBITDA 5y) 121.60 - 153.47 139.30 -42.5%
DCF (EBITDA 10y) 181.36 - 232.54 208.02 -14.1%
Fair Value 156.57 - 156.57 156.57 -35.32%
P/E 102.34 - 112.75 108.90 -55.0%
EV/EBITDA 67.75 - 120.00 97.60 -59.7%
EPV 73.75 - 103.93 88.84 -63.3%
DDM - Stable 68.53 - 251.08 159.81 -34.0%
DDM - Multi 151.94 - 394.74 215.21 -11.1%

IBM Intrinsic Value - Key Valuation Metrics

Market Cap (mil) 225,511.67
Beta 0.70
Outstanding shares (mil) 931.52
Enterprise Value (mil) 277,732.70
Market risk premium 4.60%
Cost of Equity 8.32%
Cost of Debt 5.00%
WACC 7.45%