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The historical rank and industry rank for International Business Machines's EV-to-OCF or its related term are showing as below:
IBM'
s EV-to-OCF Range Over the Past 10 Years
Min: 7.68 Med: 11.51 Max: 25.95
Current: 17.88
During the past 13 years, the highest EV-to-OCF of International Business Machines was 25.95. The lowest was 7.68. And the median was 11.51.
IBM's EV-to-OCF is ranked worse than 75.84% of 2877
companies
in the Software industry
Industry Median: 6.71
vs IBM: 17.88
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 (NYSE:IBM) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 $221.74.
International Business Machines's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $11.270.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
International Business Machines EV-to-OCF Related Terms
International Business Machines EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Software Industry
For the Software industry and Technology sector, International Business Machines's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where International Business Machines's EV-to-OCF falls into.
International Business Machines's current Enterprise Value is $266,138 Mil.
International Business Machines's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $14,888 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 (IBM) has a EV-to-OCF of 17.88 as of Jul. 31, 2026. This is 55% above median its historical median of 11.51. Over the past decade, International Business Machines' EV-to-OCF has ranged from 7.68 to 25.95. According to the industry distribution chart, International Business Machines ranks #2182 out of 2877 companies in the Software industry, placing it in the top 75.8%.
Is International Business Machines' EV-to-OCF too high?
International Business Machines' current EV-to-OCF of 17.88 is 55% above median its 10-year median of 11.51. Over the past 10 years, this metric has ranged from a low of 7.68 to a high of 25.95. The Software industry median EV-to-OCF is 6.71. International Business Machines' value of 17.88 is 166.5% above this industry median. Based on the distribution chart, International Business Machines ranks #2182 out of 2877 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, International Business Machines has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' EV-to-OCF compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #2182 out of 2877 companies for EV-to-OCF. This places International Business Machines in the lower half of its industry. The industry median EV-to-OCF is 6.71. International Business Machines' value of 17.88 is 166.5% above this benchmark. Historically, International Business Machines' own EV-to-OCF has ranged from 7.68 to 25.95 over the past decade. While the company's 10-year median is 11.51 vs. the industry median of 6.71, 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-OCF for a Software company?
The median EV-to-OCF among Software companies is 6.71, based on 2,877 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current EV-to-OCF of 17.88 is 166.5% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median EV-to-OCF is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current EV-to-OCF is 17.88, which is 55% above median its own 10-year median of 11.51. 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 (IBM) is currently considered Fairly Valued. The stock's GF Value™ is $241.67, compared to a current price of $221.74 — trading 8.2% below its estimated fair value. The current EV-to-OCF is 17.88, which is 55% above median its 10-year median of 11.51 and 166.5% above the Software industry median of 6.71. International Business Machines' overall GF Score™ is 82/100 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For International Business Machines (IBM), the current EV-to-OCF is 17.88 as of Jul. 31, 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 (IBM) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be undervalued.
The current stock price of $221.74 is trading 8.2% below its estimated GF Value™ of $241.67.
GuruFocus considers International Business Machines to be Fairly Valued.
Key valuation signals for IBM:
EV-to-OCF: 17.88 (55% above median its 10-year median of 11.51)
GF Value™: $241.67 vs. price of $221.74 (8.2% below fair value)
Industry Position: 166.5% above the Software median (#2182 of 2877)
No single metric tells the full story. See the IBM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
82GF Score
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