SharesGrow 7-Criteria Score
All 7 criteria scored · valuation-related highlighted on this page
International Business Machines Corporation (IBM) trades at a trailing P/E of 21.2, forward P/E of 19.4. Trailing earnings yield is 4.72%, forward earnings yield 5.15%. PEG 0.29 (Peter Lynch undervalued ≤1.0). Graham Number is $94.33.
Criteria proven by this page:
- VALUE (70/100, Pass) — P/E is below market average (21.2); PEG ≤ 1.0 — Peter Lynch undervalued (0.29); analyst target implies upside (+45.5%); earnings yield beats bond yields (4.72%).
- Forward P/E 19.4 (down from trailing 21.2) — analysts expect earnings to grow, which would improve the valuation.
- PEG Ratio 0.29 — below 1.0 suggests the stock is undervalued relative to its earnings growth rate (Peter Lynch criterion).
- Trailing Earnings Yield 4.72% — roughly competitive with bond yields (~4.3%), moderate risk-reward. Forward yield improves to 5.15% as earnings recover.
- Analyst consensus target $349.50 (+45.5% upside) — significant upside potential according to Wall Street analysts.
Overall SharesGrow Score: 68/100 with 5/7 criteria passed.
SharesGrow 7-Criteria Score
✓
VALUE
70/100
Price-to-Earnings & upside
Proven by this page
✗
HEALTH
17/100
Debt-to-Equity & liquidity
→ Health
Valuation Snapshot — IBM
Valuation Multiples
P/E (TTM)21.2
Forward P/E19.4
PEG Ratio0.29
Forward PEG1.78
P/B Ratio6.88
P/S Ratio3.33
EV/EBITDA16.1
Per Share Data
EPS (TTM)$11.31
Forward EPS (Est.)$12.38
Book Value / Share$34.96
Revenue / Share$72.11
FCF / Share$13.12
Yields & Fair Value
Earnings Yield4.72%
Forward Earnings Yield5.15%
Dividend Yield2.80%
Graham Number$94.33
SharesGrow IV$204.88 (-14.7%)
Analyst Target$349.50 (+45.5%)
Historical Valuation
| Year |
P/E (TTM) |
PEG Ratio |
P/B Ratio |
P/S Ratio |
Dividend Yield |
| 2016 |
12.8 |
-1.64 |
8.30 |
1.90 |
3.47% |
| 2017 |
23.8 |
-0.47 |
7.77 |
1.73 |
4.03% |
| 2018 |
11.3 |
0.21 |
5.90 |
1.24 |
5.72% |
| 2019 |
12.0 |
1.09 |
5.45 |
1.97 |
5.02% |
| 2020 |
19.2 |
-0.47 |
5.20 |
1.94 |
5.41% |
| 2021 |
20.9 |
10.08 |
6.34 |
2.09 |
4.90% |
| 2022 |
77.5 |
-1.08 |
5.80 |
2.10 |
4.68% |
| 2023 |
19.9 |
0.06 |
6.61 |
2.41 |
4.05% |
| 2024 |
34.2 |
-1.66 |
7.54 |
3.28 |
2.98% |
| 2025 |
26.1 |
0.35 |
8.46 |
4.09 |
2.27% |
P/E Ratio & Earnings Yield
Earnings Per Share (EPS) History
| Year |
EPS (Diluted) |
Revenue |
Net Income |
Net Margin |
| 2016 |
$12.38 |
$79.92B |
$11.87B |
14.9% |
| 2017 |
$6.14 |
$79.14B |
$5.75B |
7.3% |
| 2018 |
$9.53 |
$79.59B |
$8.73B |
11% |
| 2019 |
$10.56 |
$57.71B |
$9.43B |
16.3% |
| 2020 |
$6.23 |
$55.18B |
$5.59B |
10.1% |
| 2021 |
$6.35 |
$57.35B |
$5.74B |
10% |
| 2022 |
$1.80 |
$60.53B |
$1.64B |
2.7% |
| 2023 |
$8.14 |
$61.86B |
$7.5B |
12.1% |
| 2024 |
$6.43 |
$62.75B |
$6.02B |
9.6% |
| 2025 |
$11.17 |
$67.54B |
$10.59B |
15.7% |
Analyst Estimates
| Year |
EPS (Avg) |
EPS Range |
Revenue (Avg) |
Revenue Range |
Analysts |
| 2026 |
$12.39 |
$12.15 – $12.71 |
$71.18B |
$70.87B – $71.4B |
11 |
| 2027 |
$13.37 |
$12.89 – $14.16 |
$74.44B |
$72.77B – $75.63B |
11 |
| 2028 |
$14.65 |
$13.34 – $15.92 |
$78.31B |
$78.23B – $78.38B |
5 |
| 2029 |
$14.20 |
$13.96 – $14.39 |
$80.59B |
$79.52B – $81.42B |
1 |
| 2030 |
$13.27 |
$13.04 – $13.45 |
$82.87B |
$81.77B – $83.72B |
1 |
