As of 2025-07-03, the Intrinsic Value of International Business Machines Corp (IBM) is 268.28 USD. This IBM valuation is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 287.65 USD, the upside of International Business Machines Corp is -6.7%.

The range of the Intrinsic Value is 160.65 - 630.63 USD.

Is IBM undervalued or overvalued?

Based on its market price of 287.65 USD and our intrinsic valuation, International Business Machines Corp (IBM) is overvalued by 6.7%.

287.65 USD

Stock Price

268.28 USD

Intrinsic Value

Intrinsic Value Details

IBM Intrinsic Value - Valuation Summary

	Range	Selected	Upside
a
DCF (Growth Exit 5Y)	160.65 - 630.63	268.28	-6.7%
DCF (Growth Exit 10Y)	191.81 - 672.54	302.60	5.2%
DCF (EBITDA Exit 5Y)	120.41 - 139.15	130.80	-54.5%
DCF (EBITDA Exit 10Y)	151.94 - 184.71	168.76	-41.3%
Peter Lynch Fair Value	147.27 - 147.27	147.27	-48.8%
P/E Multiples	92.49 - 107.09	99.92	-65.3%
EV/EBITDA Multiples	74.25 - 166.01	121.14	-57.9%
Earnings Power Value	74.92 - 107.65	91.29	-68.3%
Dividend Discount Model - Stable	67.29 - 267.77	167.53	-41.8%
Dividend Discount Model - Multi Stages	147.04 - 409.92	211.47	-26.5%

IBM Intrinsic Value - Peers Comparison

	Range	Selected	Upside
a
Accenture PLC	293.78 - 572.41	384.44	27.2%
Cognizant Technology Solutions Corp	64.86 - 120.88	83.29	3.8%
CGI Inc	144.41 - 305	195.59	36.8%
Leidos Holdings Inc	144.24 - 318.84	200.20	23.1%
Booz Allen Hamilton Holding Corp	105.91 - 178.72	133.85	23.6%
CACI International Inc	418.36 - 923.2	585.45	20.0%
KBR Inc	82.81 - 226.84	123.27	159.8%
Science Applications International Corp	98.58 - 238.5	143.70	22.2%
DXC Technology Co	21.85 - 42.76	29.52	85.0%
Converge Technology Solutions Corp	4.24 - 18.99	7.29	21.7%

IBM Intrinsic Value - Key Valuation Metrics

Market Cap (mil)	267,342
Beta	0.71
Outstanding shares (mil)	929
Enterprise Value (mil)	319,591

Market risk premium	5.1%
Cost of Equity	8.05%
Cost of Debt	5%
WACC	7.3%