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IBM IBM

software · 2026-09-25

N/A
fair · 66
Owner-earnings value$246.83
Price$227.06
Margin of safety +8.7%

Quality gate · 66/100

Returns on capital 13.5/30
Consistency 17.0/22
Margins / pricing power 14.9/16
Balance sheet 7.0/16
Cash conversion 10/10
Capital allocation 3.4/6
Median ROIC11.1%
Gross margin58.1%
Net debt / EBITDA2.9x
FCF conversion170%
Share count / yr+1.1%
Profitable years4/4

Moat & management

Owner-earnings inputs

Owner earnings (TTM)13.14B
Owner-earnings yield6.1%
Free-cash-flow yield6.1%
Growth used (normalized)3.7%
Market-implied growth (reverse DCF)1.7%
Terminal growth3.0%
Discount rate (hurdle)9.0%

Projected owner earnings

YrOwner earningsGrowthPV
113.63B 3.7%12.51B
214.13B 3.6%11.89B
314.63B 3.6%11.30B
415.14B 3.5%10.73B
515.66B 3.4%10.17B
616.17B 3.3%9.64B
716.70B 3.2%9.13B
817.23B 3.2%8.65B
917.76B 3.1%8.18B
1018.29B 3.0%7.73B

Recent news

score · 8 articles

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  • IBM's New Swift Connection Is One More Headache for XRP Investors
  • IBM (IBM) Registers a Bigger Fall Than the Market: Important Facts to Note

⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~2%/yr owner-earnings growth over 10y (reverse DCF); model credits 4%.

History

DateQualityPriceValueMoSRating
2026-09-25 66 $227.06 $246.83 +8.7% N/A
2026-08-24 66 $235.68 $246.83 +4.7% N/A
2026-07-21 66 $213.00 $230.74 +8.3% N/A
2026-07-02 66 $286.25 $230.74 -19.4% N/A
2026-06-25 66 $262.96 $230.74 -12.3% N/A
2026-06-23 66 $264.94 $230.74 -12.9% N/A