* 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 FCF Margin % Chart
XTER:IBM vs ACN, FISV, CTSH: FCF Margin % Comparison
For the Information Technology Services subindustry, International Business Machines's FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Software Industry
For the Software industry and Technology sector, International Business Machines's FCF Margin % distribution charts can be found below:
* The bar in red indicates where International Business Machines's FCF Margin % 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 (XTER:IBM) has a FCF Margin % of 30.02% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on International Business Machines and its competitors. This is 74% above median its historical median of 17.23. Over the past decade, International Business Machines' FCF Margin % has ranged from 13.98 to 27.12. According to the industry distribution chart, International Business Machines ranks #463 out of 2811 companies in the Software industry, placing it in the top 16.5%.
Is International Business Machines' FCF Margin % too high?
International Business Machines' current FCF Margin % of 30.02% is 74% above median its 10-year median of 17.23. Over the past 10 years, this metric has ranged from a low of 13.98 to a high of 27.12. The Software industry median FCF Margin % is 2.40. International Business Machines' value of 30.02% is 1150.8% above this industry median. Based on the distribution chart, International Business Machines ranks #463 out of 2811 companies in the Software industry, which is in the top quartile — a strong position 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' FCF Margin % compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #463 out of 2811 companies for FCF Margin %. This places International Business Machines in the top 17% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.40. International Business Machines' value of 30.02% is 1150.8% above this benchmark. Historically, International Business Machines' own FCF Margin % has ranged from 13.98 to 27.12 over the past decade. While the company's 10-year median is 17.23 vs. the industry median of 2.40, 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 FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.40, based on 2,811 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current FCF Margin % of 30.02% is 1150.8% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on International Business Machines and its competitors. For the Software industry, the median FCF Margin % is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current FCF Margin % is 30.02%, which is 74% above median its own 10-year median of 17.23. 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 (XTER:IBM) is currently considered Modestly Overvalued. The stock's GF Value™ is €209.60, compared to a current price of €232.50 — trading 10.9% above its estimated fair value. The current FCF Margin % is 30.02%, which is 74% above median its 10-year median of 17.23 and 1150.8% above the Software industry median of 2.40. International Business Machines' overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For International Business Machines (XTER:IBM), the current FCF Margin % is 30.02% 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 (XTER:IBM) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be overvalued.
The current stock price of €232.50 is trading 10.9% above its estimated GF Value™ of €209.60.
GuruFocus considers International Business Machines to be Modestly Overvalued.
Key valuation signals for XTER:IBM:
FCF Margin %: 30.02% (74% above median its 10-year median of 17.23)
GF Value™: €209.60 vs. price of €232.50 (10.9% above fair value)
Industry Position: 1150.8% above the Software median (#463 of 2811)
No single metric tells the full story. See the XTER: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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