Bringing the fundamentals into focus…
Back to International Business Machines Corporation
How International Business Machines Corporation stacks up
IBM · against 30 other Technology companies of similar size
Valuation
65/ 100
Above the middle of the pack.
Ranked #8 of 31 · scores higher than 73% of peers
Bars: peers in each 10-point band of the valuation score4 peers with a valuation score of 60–69, including IBM · Click a bar to see the companies
Why valuation scores 65?
Weighted metrics compared with all Technology companies.Mainly thanks to its earnings yield and free cash flow yield, which are stronger than most Technology peers.
- EBITDA yield is close to the peer norm. EBITDA yield: 5.2% vs peer median 4.2%
- more free cash flow for the price paid: stronger than 70% of peers. Free cash flow yield: 5.9% vs peer median 2.7%
- higher earnings for the price paid: stronger than 72% of peers. Earnings yield: 4.6% vs peer median 2.2%
Metric by metric
Position: dot = IBM, ranked from the worst peer (left) to the best (right); tick = middle, shaded = middle half of peers.| Metric | IBM | Peer median | Better than | Position among peers | Weight |
|---|---|---|---|---|---|
| Earnings yieldHigher is better · 32 reported | 4.5% | 2.4% | 71% | 30% | |
| EBITDA yieldHigher is better · 31 reported | 5.6% | 3.4% | 77% | 50% | |
| Free cash flow yieldHigher is better · 30 reported | 5.6% | 2.1% | 79% | 20% | |
| Book yieldHigher is better · 30 reported | 14.6% | 8.9% | 66% | Context only |
Ranking by valuation score
Top 5 and the companies ranked around IBM| Rank | Company | Market cap | Valuation | Overall |
|---|---|---|---|---|
| 1 | 155.8B USD | 81 | 63 | |
| 1 | 164.9B USD | 81 | 89 | |
| 3 | 22.73T JPY (≈$154.5B) | 76 | 62 | |
| 4 | 136.0B USD | 75 | 60 | |
| 5 | 175.6B USD | 73 | 56 | |
| 6 | 148.4B USD | 71 | 50 | |
| 7 | 182.9B USD | 70 | 58 | |
| 8 | 235.6B USD | 65 | 52 | |
| 8 | 125.2B USD | 65 | 70 | |
| 10 | 259.7B USD | 63 | 63 | |
| 11 | 382.5B USD | 62 | 55 | |
| 12 | 265.8B USD | 54 | 68 |
Scores are sector-relative percentiles from the latest snapshot, always calculated against the whole sector: narrowing the comparison group changes who you compare with, not the scores. Missing metrics are left out and the remaining weights rescaled. How we score