International Business Machines CorporationOpportunity Rank #288(IBM) Intrinsic Value & DCF Analysis (2026)
Current Price
$231.31
Last updated: May 08, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
Trend Score
As of 2026-05-08
The intrinsic value of International Business Machines Corporation (IBM) is estimated at $128.40 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $231.31, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -3.12% long-term growth rate and an 8.00% discount rate (calculated: 6.60%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of International Business Machines Corporation (IBM) is estimated at $128.40 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $231.31, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -3.12% long-term growth rate and an 8.00% discount rate (calculated: 6.60%), reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Trend Details
Investment Coach
- Price moves to at least a mid-teens discount to fair value.
- Sustained improvement in ROIC versus WACC spread.
- Meaningful shifts in the narrative score direction.
Free Cash Flow (in millions)
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.