International Business MachinesXSWX:IBM 69 Debt-to-EBITDA is 5.57 as of Mar. 2026, which is 31% above its 10-year median of 4.26. GuruFocus rates XSWX:IBM with a GF Score™ of 69/100 and a GF Value™ of CHF187.83 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,701 Software companies, International Business Machines ranks worse than 81.72% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for International Business Machines's Debt-to-EBITDA or its related term are showing as below:
XSWX:IBM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.43 Med: 4.26 Max: 7.53
Current: 3.96
During the past 13 years, the highest Debt-to-EBITDA Ratio of International Business Machines was 7.53. The lowest was 2.43. And the median was 4.26.
XSWX:IBM's Debt-to-EBITDA is ranked worse than 81.72% of 1701
companies
in the Software industry
Industry Median: 1.08
vs XSWX:IBM: 3.96
International Business Machines (XSWX:IBM) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
International Business Machines Debt-to-EBITDA Related Terms
International Business Machines Debt-to-EBITDA Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
International Business Machines Debt-to-EBITDA Chart
XSWX:IBM vs ACN, FISV, FIS: Debt-to-EBITDA Comparison
For the Information Technology Services subindustry, International Business Machines's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
International Business Machines Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, International Business Machines's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where International Business Machines's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
International Business Machines (XSWX:IBM) has a Debt-to-EBITDA of 5.57 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on International Business Machines. This is 31% above median its historical median of 4.26. Over the past decade, International Business Machines' Debt-to-EBITDA has ranged from 2.43 to 7.53. According to the industry distribution chart, International Business Machines ranks #1390 out of 1701 companies in the Software industry, placing it in the top 81.7%.
Is International Business Machines' Debt-to-EBITDA too high?
International Business Machines' current Debt-to-EBITDA of 5.57 is 31% above median its 10-year median of 4.26. Over the past 10 years, this metric has ranged from a low of 2.43 to a high of 7.53. The Software industry median Debt-to-EBITDA is 1.08. International Business Machines' value of 5.57 is 415.7% above this industry median. Based on the distribution chart, International Business Machines ranks #1390 out of 1701 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, International Business Machines has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' Debt-to-EBITDA compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #1390 out of 1701 companies for Debt-to-EBITDA. This places International Business Machines in the lower half of its industry. The industry median Debt-to-EBITDA is 1.08. International Business Machines' value of 5.57 is 415.7% above this benchmark. Historically, International Business Machines' own Debt-to-EBITDA has ranged from 2.43 to 7.53 over the past decade. While the company's 10-year median is 4.26 vs. the industry median of 1.08, International Business Machines has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.08, based on 1,701 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current Debt-to-EBITDA of 5.57 is 415.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on International Business Machines. For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current Debt-to-EBITDA is 5.57, which is 31% above median its own 10-year median of 4.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is International Business Machines stock overvalued right now?
Based on GuruFocus' analysis, International Business Machines (XSWX:IBM) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF187.83, compared to a current price of CHF230.15 — trading 22.5% above its estimated fair value. The current Debt-to-EBITDA is 5.57, which is 31% above median its 10-year median of 4.26 and 415.7% above the Software industry median of 1.08. International Business Machines' overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For International Business Machines (XSWX:IBM), the current Debt-to-EBITDA is 5.57 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is International Business Machines (XSWX:IBM) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be overvalued.
The current stock price of CHF230.15 is trading 22.5% above its estimated GF Value™ of CHF187.83.
GuruFocus considers International Business Machines to be Modestly Overvalued.
Key valuation signals for XSWX:IBM:
Debt-to-EBITDA: 5.57 (31% above median its 10-year median of 4.26)
GF Value™: CHF187.83 vs. price of CHF230.15 (22.5% above fair value)
Industry Position: 415.7% above the Software median (#1390 of 1701)
No single metric tells the full story. See the XSWX:IBM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
International Business Machines Business Description
Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. It provides software, IT consulting services, and hardware to help business customers modernize their technology workflows. IBM operates in 175 countries and employs approximately 300,000 people. The company has a robust roster of business partners to service its clients, which includes 95% of all Fortune 500 companies. IBM's products, including Red Hat, watsonx, and mainframes, handle some of the world's most important data workloads in areas like finance and retail.
69GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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