What Is IBM Fair Value?
International Business Machines Corporation (IBM) fair value estimate using multiple valuation models, updated daily.
As of August 1, 2026, International Business Machines Corporation (IBM) has a composite fair value estimate of $191.92 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $223.65, suggesting the stock is fair value by 14.2%.
Data as of August 1, 2026 (today)
Composite Fair Value
Fair Value4 of 4 models$191.92
vs. current price of $223.65(-14.2%)
How Is IBM Fair Value Calculated?
Four independent models estimate what IBM is worth. Each uses different inputs and assumptions. The composite blends them by weight.
IBM Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$278.22
+24.4%Undervalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$142.45
-36.3%Overvalued
Inputs used
IBM Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$100.71
-55.0%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$123.27
-44.9%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $223.65 is 24.4% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $12.85B | $11.98B |
| Year 2 | $13.70B | $11.92B |
| Year 3 | $14.60B | $11.85B |
| Year 4 | $15.57B | $11.79B |
| Year 5 | $16.60B | $11.72B |
| Year 6 | $17.70B | $11.66B |
| Year 7 | $18.87B | $11.60B |
| Year 8 | $20.12B | $11.53B |
| Year 9 | $21.45B | $11.47B |
| Year 10 | $22.88B | $11.41B |
| Terminal Value | $498.41B | $248.58B |
What Are IBM's Key Financial Metrics?
Earnings & Growth
Current Price
$223.65
EPS (TTM)
$11.25
Forward P/E
17.0
Profit Margin
15.5%
Cash & Balance Sheet
Free Cash Flow
12B
EBITDA
16.5B
Book Value
$36.57
Total Debt
65.3B
What Do Analysts Say About IBM?
Low
$174.00
Average
$244.16
High
$350.00
Upside
+9.2%
IBM Fair Value FAQ
What is the fair value of IBM?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), IBM's estimated fair value is $191.92. The stock is currently trading at $223.65, which makes it fair value by our analysis.
How is IBM's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is IBM overvalued or undervalued?
Based on our analysis, IBM is fair value. The current price of $223.65 is 14.2% above our estimated fair value of $191.92.
What do Wall Street analysts say about IBM?
23 analysts cover International Business Machines Corporation with a consensus rating of "Buy." The average price target is $244.16, ranging from $174.00 to $350.00. This implies 9.2% upside from the current price.