International Business MachinesXSWX:IBM 69 Debt-to-Equity is 2.12 as of Mar. 2026, which is 20% below its 10-year median of 2.66. 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 2,238 Software companies, International Business Machines ranks worse than 94.06% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for International Business Machines's Debt-to-Equity or its related term are showing as below:
XSWX:IBM'
s Debt-to-Equity Range Over the Past 10 Years
Min: 1.98 Med: 2.66 Max: 4.44
Current: 2.12
During the past 13 years, the highest Debt-to-Equity Ratio of International Business Machines was 4.44. The lowest was 1.98. And the median was 2.66.
XSWX:IBM's Debt-to-Equity is ranked worse than 94.06% of 2238
companies
in the Software industry
Industry Median: 0.19
vs XSWX:IBM: 2.12
International Business Machines (XSWX:IBM) Debt-to-Equity Explanation
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
International Business Machines Debt-to-Equity Related Terms
International Business Machines Debt-to-Equity 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-Equity Chart
XSWX:IBM vs ACN, FISV, FIS: Debt-to-Equity Comparison
For the Information Technology Services subindustry, International Business Machines's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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-Equity vs Software Industry
For the Software industry and Technology sector, International Business Machines's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where International Business Machines's Debt-to-Equity 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.
International Business Machines (XSWX:IBM) has a Debt-to-Equity of 2.12 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on International Business Machines and its competitors. This is 20% below median its historical median of 2.66. Over the past decade, International Business Machines' Debt-to-Equity has ranged from 1.98 to 4.44. According to the industry distribution chart, International Business Machines ranks #2105 out of 2238 companies in the Software industry, placing it in the top 94.1%.
Is International Business Machines' Debt-to-Equity too high?
International Business Machines' current Debt-to-Equity of 2.12 is 20% below median its 10-year median of 2.66. Over the past 10 years, this metric has ranged from a low of 1.98 to a high of 4.44. The Software industry median Debt-to-Equity is 0.19. International Business Machines' value of 2.12 is 1015.8% above this industry median. Based on the distribution chart, International Business Machines ranks #2105 out of 2238 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-Equity compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #2105 out of 2238 companies for Debt-to-Equity. This places International Business Machines in the lower half of its industry. The industry median Debt-to-Equity is 0.19. International Business Machines' value of 2.12 is 1015.8% above this benchmark. Historically, International Business Machines' own Debt-to-Equity has ranged from 1.98 to 4.44 over the past decade. While the company's 10-year median is 2.66 vs. the industry median of 0.19, 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-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.19, based on 2,238 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current Debt-to-Equity of 2.12 is 1015.8% 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on International Business Machines and its competitors. For the Software industry, the median Debt-to-Equity is 0.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current Debt-to-Equity is 2.12, which is 20% below median its own 10-year median of 2.66. 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-Equity is 2.12, which is 20% below median its 10-year median of 2.66 and 1015.8% above the Software industry median of 0.19. 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For International Business Machines (XSWX:IBM), the current Debt-to-Equity is 2.12 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-Equity: 2.12 (20% below median its 10-year median of 2.66)
GF Value™: CHF187.83 vs. price of CHF230.15 (22.5% above fair value)
Industry Position: 1015.8% above the Software median (#2105 of 2238)
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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