IBM

$289.89

Public overview and default valuation.

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Valuation Details
Default assumptions: 10Y forecast, 9% market return, 2.5% terminal growth, -3.13% trendline growth.
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$175.60

With 20% Margin of Safety (MoS):

$140.48
-51.54% downside
Capital Efficiency
Average Quarterly ROIC
3.93%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.
Fundamental Score
19
BearishWeighted across 6 signals
DCF Discount
51.5% premium to price
0
FCF Yield
5.2% trailing FCF yield
80
ROIC vs WACC
ROIC 3.9% vs WACC 11.0% (0.4x)
18
Net Debt / FCF
3.6x net debt to FCF
0
Buybacks
Share count growing
30
FCF CAGR (5Y)
-4.5% 5Y FCF CAGR (adjusted)
0
Strengths: FCF Yield. Concerns: DCF Discount, ROIC vs WACC.
Narrative Score
80
Strong
Weighted across 6 recent drivers · Last 30 daysVs 6-Month Baseline: High (92th pct)
Trend: Improving upConfidence: 100%Updated: 5h ago
Sources: 213 (News 200 · Analyst 13)
Drivers
129 news sentiment+5.7
58 regulatory scrutiny+3.0
4 earnings beat+0.9
2 macro headwinds+0.5
6 upgrade headlines+0.1
Restructuring-0.1
Other Metrics
P/E25.6
Profit Margin15.7%
Owner Earnings$16.52b
One Dollar Premise59.00%
Debt/Equity4.15
Current Ratio0.94
PEG0.772
Free Cash Flow (in millions)
20062007200820092010201120122013201420152016201720182019202020212022202320242025
$20,185$21,594$23,699$24,850$24,303$24,513$24,303$21,625$21,051$21,406$21,234$20,497$19,211$17,677$21,427$15,564$12,407$15,741$15,130$14,100
How Intrinziq Estimates Fair Value

Intrinziq estimates International Business Machines Corporation's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

International Business Machines CorporationTechnology

International Business Machines Corporation provides integrated solutions and services worldwide. The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. The Software segment offers hybrid cloud platform and software solutions, such as Red Hat, an enterprise open-source solutions; software for business automation, AIOps and management, integration, and application servers; data and artificial intelligence solutions; and security software and services for threat, data, and identity. This segment also provides transaction processing software that supports clients' mission-critical and on-premise workloads in banking, airlines, and retail industries. The Consulting segment offers business transformation services, including strategy, business process design and operations, data and analytics, and system integration services; technology consulting services; and application and cloud platform services. The Infrastructure segment provides on-premises and cloud-based server and storage solutions for its clients' mission-critical and regulated workloads; and support services and solutions for hybrid cloud infrastructure, as well as remanufacturing and remarketing services for used equipment. The Financing segment offers lease, installment payment, loan financing, and short-term working capital financing services. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.

Last updated: Feb 06, 2026
Data sources: Financial Modeling Prep
This valuation is based on assumptions and publicly available data. It is not financial advice or a recommendation to buy or sell any security. Always do your own research before making investment decisions.