What is International Business Machines EV-to-EBIT?
International Business MachinesXSWX:IBM 69 EV-to-EBIT is 26.72 as of Jul. 06, 2026, which is 15% above its 10-year median of 23.14. 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 1,755 Software companies, International Business Machines ranks worse than 70.03% on this metric.
International Business Machines (XSWX:IBM) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
International Business Machines's Enterprise Value for the quarter that ended in Mar. 2026 was CHF224,555 Mil.
International Business Machines's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF10,000 Mil.
* 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 EV-to-EBIT Related Terms
International Business Machines EV-to-EBIT 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.
For the Information Technology Services subindustry, International Business Machines's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, International Business Machines's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where International Business Machines's EV-to-EBIT falls into.
International Business Machines's current Enterprise Value is CHF267,226 Mil.
International Business Machines's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF10,000 Mil.
* 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 EV-to-EBIT of 26.72 as of Jul. 06, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on International Business Machines and its competitors. This is 15% above median its historical median of 23.14. Over the past decade, International Business Machines' EV-to-EBIT has ranged from 10.73 to 93.14. According to the industry distribution chart, International Business Machines ranks #1229 out of 1755 companies in the Software industry, placing it in the top 70%.
Is International Business Machines' EV-to-EBIT too high?
International Business Machines' current EV-to-EBIT of 26.72 is 15% above median its 10-year median of 23.14. Over the past 10 years, this metric has ranged from a low of 10.73 to a high of 93.14. The Software industry median EV-to-EBIT is 14.39. International Business Machines' value of 26.72 is 85.7% above this industry median. Based on the distribution chart, International Business Machines ranks #1229 out of 1755 companies in the Software industry, which is below the industry midpoint. 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' EV-to-EBIT compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #1229 out of 1755 companies for EV-to-EBIT. This places International Business Machines in the lower half of its industry. The industry median EV-to-EBIT is 14.39. International Business Machines' value of 26.72 is 85.7% above this benchmark. Historically, International Business Machines' own EV-to-EBIT has ranged from 10.73 to 93.14 over the past decade. While the company's 10-year median is 23.14 vs. the industry median of 14.39, 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 14.39, based on 1,755 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current EV-to-EBIT of 26.72 is 85.7% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on International Business Machines and its competitors. For the Software industry, the median EV-to-EBIT is 14.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current EV-to-EBIT is 26.72, which is 15% above median its own 10-year median of 23.14. 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 EV-to-EBIT is 26.72, which is 15% above median its 10-year median of 23.14 and 85.7% above the Software industry median of 14.39. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For International Business Machines (XSWX:IBM), the current EV-to-EBIT is 26.72 as of Jul. 06, 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:
EV-to-EBIT: 26.72 (15% above median its 10-year median of 23.14)
GF Value™: CHF187.83 vs. price of CHF230.15 (22.5% above fair value)
Industry Position: 85.7% above the Software median (#1229 of 1755)
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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