What is International Business Machines EV-to-FCF?
International Business MachinesXSWX:IBM 69 EV-to-FCF is 27.43 as of Jul. 06, 2026, which is 82% above its 10-year median of 15.04. 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 1,591 Software companies, International Business Machines ranks worse than 71.53% on this metric.
The historical rank and industry rank for International Business Machines's EV-to-FCF or its related term are showing as below:
XSWX:IBM'
s EV-to-FCF Range Over the Past 10 Years
Min: 10.17 Med: 15.04 Max: 29.89
Current: 26.94
During the past 13 years, the highest EV-to-FCF of International Business Machines was 29.89. The lowest was 10.17. And the median was 15.04.
XSWX:IBM's EV-to-FCF is ranked worse than 71.53% of 1591
companies
in the Software industry
Industry Median: 14.6
vs XSWX:IBM: 26.94
EV-to-FCF 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 (XSWX:IBM) EV-to-FCF Explanation
EV-to-FCF 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 CHF230.15.
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 CHF9.037.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
International Business Machines EV-to-FCF Related Terms
International Business Machines EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry
For the Software industry and Technology sector, International Business Machines's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where International Business Machines's EV-to-FCF falls into.
International Business Machines's current Enterprise Value is CHF267,226 Mil.
International Business Machines's Free Cash Flow 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 CHF9,742 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-FCF of 27.43 as of Jul. 06, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on International Business Machines and its competitors. This is 82% above median its historical median of 15.04. Over the past decade, International Business Machines' EV-to-FCF has ranged from 10.17 to 29.89. According to the industry distribution chart, International Business Machines ranks #1138 out of 1591 companies in the Software industry, placing it in the top 71.5%.
Is International Business Machines' EV-to-FCF too high?
International Business Machines' current EV-to-FCF of 27.43 is 82% above median its 10-year median of 15.04. Over the past 10 years, this metric has ranged from a low of 10.17 to a high of 29.89. The Software industry median EV-to-FCF is 14.60. International Business Machines' value of 27.43 is 87.9% above this industry median. Based on the distribution chart, International Business Machines ranks #1138 out of 1591 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-FCF compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #1138 out of 1591 companies for EV-to-FCF. This places International Business Machines in the lower half of its industry. The industry median EV-to-FCF is 14.60. International Business Machines' value of 27.43 is 87.9% above this benchmark. Historically, International Business Machines' own EV-to-FCF has ranged from 10.17 to 29.89 over the past decade. While the company's 10-year median is 15.04 vs. the industry median of 14.60, 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.60, based on 1,591 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current EV-to-FCF of 27.43 is 87.9% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on International Business Machines and its competitors. For the Software industry, the median EV-to-FCF is 14.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current EV-to-FCF is 27.43, which is 82% above median its own 10-year median of 15.04. 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-FCF is 27.43, which is 82% above median its 10-year median of 15.04 and 87.9% above the Software industry median of 14.60. 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For International Business Machines (XSWX:IBM), the current EV-to-FCF is 27.43 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-FCF: 27.43 (82% above median its 10-year median of 15.04)
GF Value™: CHF187.83 vs. price of CHF230.15 (22.5% above fair value)
Industry Position: 87.9% above the Software median (#1138 of 1591)
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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