NYSE: IBM · Information Technology Services
International Business Machines (IBM) fair value: undervalued or overvalued?
As of 26 Sep 2026, Faircurve's model values International Business Machines (IBM) at $166.73 a share. The stock last closed at $222.64, which puts the model's fair value 25.1% below the price. On the model's bands that reads as Overvalued.
Revalued . Price is the close of 2 Oct 2026. International Business Machines Corporation.
Faircurve Insights · 26 Sep 2026
International Business Machines Corporation (IBM) delivers comprehensive technology solutions and services across the globe. The company's operations are structured into four primary segments: Software, Consulting, Infrastructure, and Financing.
On 26 Sep 2026, Faircurve's model gave a fair value of $166.73 a share, the midpoint of 2,000 simulations. The fair value moved -2.4% since the previous run on 19 Sep 2026, which gave $170.78. The model's calibrated range over 63 trading days was $201.38 to $275.21, and ranges built this way held the price 60% of the time at this horizon. The evidence grade for this valuation was Medium.
The company's overall quality score was 28 out of 100 against comparable companies. The model compares it with Accenture plc (ACN), Cognizant Technology Solutions Corporation (CTSH), Fiserv, Inc. (FISV), Broadridge Financial Solutions, Inc. (BR), CDW Corporation (CDW), and CACI International Inc (CACI). The stock moved a median of 5.6%, ignoring direction, around its last 8 earnings reports.
Written from the figures on this page for the 26 Sep 2026 valuation and checked by rule before publishing: every number is one printed here, no forecast, no instruction. The price, the gap and the verdict are the page's own and change daily. Not a recommendation.
What price range does the model give IBM?
The calibrated range for IBM over 63 trading days is $198.72 to $271.57. It sits around the last close, and its width comes from the volatility that IBM's own options imply (44% a year), calibrated weekly against realised prices (n = 3,330 past valuations, refreshed 26 Sep 2026). Ranges built this way held the price 60% of the time at this horizon. The fair value is the model's opinion and rides beside the range. It is not the centre of it.
The model's own simulated range, from the 20th to the 80th percentile of its runs, is $110.86 to $238.60. In 24% of the simulations the fair value came out above the price the model ran on.
How does IBM score on business quality?
International Business Machines's overall quality score is 28 out of 100. Each factor below is a score against comparable companies, not a percentile of the metric beside it.
| Factor | Score (0 to 100) | Headline measure | Peer median |
|---|---|---|---|
| ProfitabilityReturn on invested capital against the peer group, with a bonus for an improving trend. | 19 | 13.3%ROIC | 15.6% |
| Earnings qualityHow much of reported profit is cash: free cash flow to net income, and the accrual ratio (the share of earnings that is not cash). | 31 | 1.27xFCF / net income | 1.42x |
| Growth qualityTrailing revenue growth, forward growth from consensus, and the direction of analyst estimate revisions. | 53 | 7.6%Revenue growth, trailing | 7.4% |
| Capital disciplineReinvestment efficiency (capital spending per unit of revenue) and net buybacks. | 7 | 0.2%Net buybacks / market value | 5.3% |
| Balance sheetNet debt to EBITDA and interest coverage. | 17 | 3.58xNet debt / EBITDA | -0.08x |
| StabilityDownside volatility of the EBITDA margin over the last five years. | 29 | 3.9 ptsEBITDA margin downside volatility, 5y | 1.4 pts |
How does IBM compare with similar companies?
The companies in information technology services closest to International Business Machines in market value, each on the same model and the same date.
| Company | Last close | Model fair value | Gap | Model verdict |
|---|---|---|---|---|
| ACN Accenture plc | $198.90 | $197.70 | -0.6% | Fairly valued |
| CTSH Cognizant Technology Solutions Corporation | $58.51 | $62.32 | +6.5% | Fairly valued |
| FISV Fiserv, Inc. | $44.36 | $43.84 | -1.2% | Fairly valued |
| BR Broadridge Financial Solutions, Inc. | $156.93 | $149.30 | -4.9% | Fairly valued |
| FIS Fidelity National Information Services, Inc. | $32.44 | $33.86 | +4.4% | Low evidence grade |
| CDW CDW Corporation | $133.29 | $129.52 | -2.8% | Fairly valued |
| LDOS Leidos Holdings, Inc. | $117.74 | $132.19 | +12.3% | Low evidence grade |
| CACI CACI International Inc | $615.04 | $583.06 | -5.2% | Fairly valued |
All information technology services stocks ranked by gap to fair value
When does IBM report earnings, and how has the stock reacted?
International Business Machines's next earnings report is scheduled for 21 Oct 2026. Companies can move their dates.
Options prices on 2 Oct 2026 imply a move of about 4.6% in either direction through the nearest expiry, about 13 days out. That is the size the market is pricing, not a direction. IBM's 30 day implied volatility works out to about 12.7% over one month.
How IBM moved around its last 8 earnings reports
Each move runs from the last close before the report to the first close after it, so it covers companies that report before the open and after the close. The median size across these 8 reports, ignoring direction, was 5.6%.
| Report date | Two session move |
|---|---|
| 22 Jul 2026 | -1.8% |
| 22 Apr 2026 | -9.6% |
| 28 Jan 2026 | +5.2% |
| 22 Oct 2025 | +1.0% |
| 23 Jul 2025 | -7.6% |
| 23 Apr 2025 | -4.8% |
| 29 Jan 2025 | +14.5% |
| 23 Oct 2024 | -6.0% |
International Business Machines at a glance
International Business Machines Corporation (IBM) delivers comprehensive technology solutions and services across the globe. The company's operations are structured into four primary segments: Software, Consulting, Infrastructure, and Financing.
- Market value
- $212.5B
- Sector
- Technology
- Industry
- Information Technology Services
- Revenue expected, next twelve months
- $72.4B
- Consensus revenue growth, next fiscal year
- +4.2%
- Analysts with estimates
- 13
- Beta to the US market
- 0.92
- First valued by Faircurve
- 1 May 2026
How the fair value is worked out: the model prices International Business Machines on the value of the whole business, debt included, against the operating profit analysts expect next year (forward EV/EBITDA), runs 2,000 simulations across its inputs and takes the midpoint. The full method is documented here.
What changed in the latest valuation?
On 19 Sep 2026 the model's fair value for IBM was $170.78. As of 26 Sep 2026 it is $166.73, a change of -2.4%. The model revalues every stock it covers each week, and again after an earnings report.
Questions about International Business Machines's valuation
Is International Business Machines stock undervalued or overvalued?
On Faircurve's model, IBM reads as Overvalued as of 26 Sep 2026. The model's fair value is $166.73 a share against a last close of $222.64, a gap of -25.1%.
What is IBM's fair value?
$166.73 a share as of 26 Sep 2026, the midpoint of 2,000 simulations. The model's own 20th to 80th percentile range is $110.86 to $238.60.
What price range does the model give IBM?
$198.72 to $271.57 over 63 trading days. Ranges built this way held the price 60% of the time across 3,330 past valuations, refreshed 26 Sep 2026.
When does International Business Machines report earnings next?
The next report is scheduled for 21 Oct 2026. Companies can move their dates.
How much has IBM moved on past earnings reports?
Across its last 8 reports the median two session move was 5.6%, ignoring direction. The largest was +14.5% around the report of 29 Jan 2025.
How confident is the model in this valuation?
The model's evidence grade for IBM is medium. The grade looks at how complete the inputs are, how many comparable companies there are and how closely they agree, and how wide the range of outcomes is. It is not a probability that the fair value is right, or that the price reaches it.