FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
International Business Machines FCF Yield % Explanation
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
International Business Machines FCF Yield % Related Terms
International Business Machines FCF Yield % 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.
STU:IBM vs ACN, FISV, CTSH: FCF Yield % Comparison
For the Information Technology Services subindustry, International Business Machines's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 Yield % vs Software Industry
For the Software industry and Technology sector, International Business Machines's FCF Yield % distribution charts can be found below:
* The bar in red indicates where International Business Machines's FCF Yield % 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 (STU:IBM) has a FCF Yield % of 4.92 as of Jun. 24, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on International Business Machines and its competitors. This is 42% below median its historical median of 8.51. Over the past decade, International Business Machines' FCF Yield % has ranged from 3.92 to 14.70. According to the industry distribution chart, International Business Machines ranks #926 out of 2865 companies in the Software industry, placing it in the top 32.3%.
Is International Business Machines' FCF Yield % too high?
International Business Machines' current FCF Yield % of 4.92 is 42% below median its 10-year median of 8.51. Over the past 10 years, this metric has ranged from a low of 3.92 to a high of 14.70. The Software industry median FCF Yield % is 0.84. International Business Machines' value of 4.92 is 485.7% above this industry median. Based on the distribution chart, International Business Machines ranks #926 out of 2865 companies in the Software industry, which is above the industry midpoint. Overall, International Business Machines has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' FCF Yield % compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #926 out of 2865 companies for FCF Yield %. This puts International Business Machines in the upper half of its industry. The industry median FCF Yield % is 0.84. International Business Machines' value of 4.92 is 485.7% above this benchmark. Historically, International Business Machines' own FCF Yield % has ranged from 3.92 to 14.70 over the past decade. While the company's 10-year median is 8.51 vs. the industry median of 0.84, 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 Yield % for a Software company?
The median FCF Yield % among Software companies is 0.84, based on 2,865 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current FCF Yield % of 4.92 is 485.7% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on International Business Machines and its competitors. For the Software industry, the median FCF Yield % is 0.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current FCF Yield % is 4.92, which is 42% below median its own 10-year median of 8.51. 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 (STU:IBM) is currently considered Modestly Overvalued. The stock's GF Value™ is €209.55, compared to a current price of €232.45 — trading 10.9% above its estimated fair value. The current FCF Yield % is 4.92, which is 42% below median its 10-year median of 8.51 and 485.7% above the Software industry median of 0.84. International Business Machines' overall GF Score™ is 78/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For International Business Machines (STU:IBM), the current FCF Yield % is 4.92 as of Jun. 24, 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 (STU:IBM) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be overvalued.
The current stock price of €232.45 is trading 10.9% above its estimated GF Value™ of €209.55.
GuruFocus considers International Business Machines to be Modestly Overvalued.
Key valuation signals for STU:IBM:
FCF Yield %: 4.92 (42% below median its 10-year median of 8.51)
GF Value™: €209.55 vs. price of €232.45 (10.9% above fair value)
Industry Position: 485.7% above the Software median (#926 of 2865)
No single metric tells the full story. See the STU: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.
78GF Score
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