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What is International Business Machines EV-to-EBITDA?
International Business MachinesCHIX:IBMD 80 EV-to-EBITDA is 14.97 as of Jul. 19, 2026, which is 11% above its 10-year median of 13.46. GuruFocus rates CHIX:IBMD with a GF Score™ of 80/100 and a GF Value™ of €241.17 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,954 Software companies, International Business Machines ranks worse than 63.41% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, International Business Machines's enterprise value is €226,541 Mil.
International Business Machines's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was €15,137 Mil. Therefore, International Business Machines's EV-to-EBITDA for today is 14.97.
The historical rank and industry rank for International Business Machines's EV-to-EBITDA or its related term are showing as below:
CHIX:IBMd'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 7.81 Med: 13.46 Max: 26.22
Current: 14.63
During the past 13 years, the highest EV-to-EBITDA of International Business Machines was 26.22. The lowest was 7.81. And the median was 13.46.
CHIX:IBMd's EV-to-EBITDA is ranked worse than 63.41% of 1954
companies
in the Software industry
Industry Median: 10.395
vs CHIX:IBMd: 14.63
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
International Business Machines (CHIX:IBMd) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
International Business Machines's PE Ratio (TTM) for today is calculated as:
International Business Machines's share price for today is €195.00.
International Business Machines's Earnings per Share (Diluted) 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 €9.700.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
* 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-EBITDA Chart
CHIX:IBMD vs ACN, FISV, FIS: EV-to-EBITDA Comparison
For the Information Technology Services subindustry, International Business Machines's EV-to-EBITDA, along with its competitors' market caps and EV-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 EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, International Business Machines's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where International Business Machines's EV-to-EBITDA falls into.
International Business Machines's current Enterprise Value is €226,541 Mil.
International Business Machines's EBITDA 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 €15,137 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 (CHIX:IBMD) has a EV-to-EBITDA of 14.97 as of Jul. 19, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on International Business Machines. This is 11% above median its historical median of 13.46. Over the past decade, International Business Machines' EV-to-EBITDA has ranged from 7.81 to 26.22. According to the industry distribution chart, International Business Machines ranks #1239 out of 1954 companies in the Software industry, placing it in the top 63.4%.
Is International Business Machines' EV-to-EBITDA too high?
International Business Machines' current EV-to-EBITDA of 14.97 is 11% above median its 10-year median of 13.46. Over the past 10 years, this metric has ranged from a low of 7.81 to a high of 26.22. The Software industry median EV-to-EBITDA is 10.40. International Business Machines' value of 14.97 is 44% above this industry median. Based on the distribution chart, International Business Machines ranks #1239 out of 1954 companies in the Software industry, which is below the industry midpoint. Overall, International Business Machines has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' EV-to-EBITDA compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #1239 out of 1954 companies for EV-to-EBITDA. This places International Business Machines in the lower half of its industry. The industry median EV-to-EBITDA is 10.40. International Business Machines' value of 14.97 is 44% above this benchmark. Historically, International Business Machines' own EV-to-EBITDA has ranged from 7.81 to 26.22 over the past decade. While the company's 10-year median is 13.46 vs. the industry median of 10.40, 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-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.40, based on 1,954 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current EV-to-EBITDA of 14.97 is 44% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on International Business Machines. For the Software industry, the median EV-to-EBITDA is 10.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current EV-to-EBITDA is 14.97, which is 11% above median its own 10-year median of 13.46. 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 (CHIX:IBMD) is currently considered Modestly Undervalued. The stock's GF Value™ is €241.17, compared to a current price of €195.00 — trading 19.1% below its estimated fair value. The current EV-to-EBITDA is 14.97, which is 11% above median its 10-year median of 13.46 and 44% above the Software industry median of 10.40. International Business Machines' overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For International Business Machines (CHIX:IBMD), the current EV-to-EBITDA is 14.97 as of Jul. 19, 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 (CHIX:IBMD) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be undervalued.
The current stock price of €195.00 is trading 19.1% below its estimated GF Value™ of €241.17.
GuruFocus considers International Business Machines to be Modestly Undervalued.
Key valuation signals for CHIX:IBMD:
EV-to-EBITDA: 14.97 (11% above median its 10-year median of 13.46)
GF Value™: €241.17 vs. price of €195.00 (19.1% below fair value)
Industry Position: 44% above the Software median (#1239 of 1954)
No single metric tells the full story. See the CHIX:IBMD 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.
80GF Score
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