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International Business MachinesXSWX:IBM 80 Intrinsic Value: Projected FCF is CHF123.01 as of Aug. 23, 2026, which is 100% below its 10-year median of 0.95. GuruFocus rates XSWX:IBM with a GF Score™ of 80/100 and a GF Value™ of CHF194.52. The stock has 1 warning sign investors should review. Among 1,463 Software companies, International Business Machines ranks worse than 53.04% on this metric.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
The historical rank and industry rank for International Business Machines's Intrinsic Value: Projected FCF or its related term are showing as below:
XSWX:IBM'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.7 Med: 0.95 Max: 2.02
Current: 1.54
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of International Business Machines was 2.02. The lowest was 0.70. And the median was 0.95.
XSWX:IBM's Price-to-Projected-FCF is ranked worse than 53.04% of 1463
companies
in the Software industry
Industry Median: 1.44
vs XSWX:IBM: 1.54
International Business Machines (XSWX:IBM) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
International Business Machines's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
189.32
/
124.97888042274
=
1.51
* 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 Intrinsic Value: Projected FCF Related Terms
International Business Machines Intrinsic Value: Projected 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.
International Business Machines Intrinsic Value: Projected FCF Chart
XSWX:IBM vs ACN, FISV, CTSH: Intrinsic Value: Projected FCF Comparison
For the Information Technology Services subindustry, International Business Machines's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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 Price-to-Projected-FCF vs Software Industry
For the Software industry and Technology sector, International Business Machines's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where International Business Machines's Price-to-Projected-FCF falls into.
International Business Machines Intrinsic Value: Projected FCF Calculation
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* 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.
What does a Intrinsic Value: Projected FCF of CHF123.01 mean?
International Business Machines (XSWX:IBM) has a Intrinsic Value: Projected FCF of CHF123.01 as of Aug. 23, 2026. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on International Business Machines and its competitors. This is 12848% above median its historical median of 0.95. Over the past decade, International Business Machines' Intrinsic Value: Projected FCF has ranged from 0.70 to 2.02. According to the industry distribution chart, International Business Machines ranks #776 out of 1463 companies in the Software industry, placing it in the top 53%.
Is International Business Machines' Intrinsic Value: Projected FCF too high?
International Business Machines' current Intrinsic Value: Projected FCF of CHF123.01 is 12848% above median its 10-year median of 0.95. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 2.02. Based on the distribution chart, International Business Machines ranks #776 out of 1463 companies in the Software industry, which is below the industry midpoint. Overall, International Business Machines has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' Intrinsic Value: Projected FCF compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #776 out of 1463 companies for Intrinsic Value: Projected FCF. This places International Business Machines in the lower half of its industry. The industry median Intrinsic Value: Projected FCF is 1.44. Historically, International Business Machines' own Intrinsic Value: Projected FCF has ranged from 0.70 to 2.02 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: Projected FCF for a Software company?
The median Intrinsic Value: Projected FCF among Software companies is 1.44, based on 1,463 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: Projected FCF significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: Projected FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: Projected FCF mean?
A high Intrinsic Value: Projected FCF can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on International Business Machines and its competitors. For the Software industry, the median Intrinsic Value: Projected FCF is 1.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current Intrinsic Value: Projected FCF is CHF123.01, which is 12848% above median its own 10-year median of 0.95. 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?
International Business Machines (XSWX:IBM) has a current Intrinsic Value: Projected FCF of CHF123.01. The stock's GF Value™ is CHF194.52, compared to a current price of CHF189.32 — trading 2.7% below its estimated fair value. The current Intrinsic Value: Projected FCF is CHF123.01, which is 12848% above median its 10-year median of 0.95. 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 Intrinsic Value: Projected FCF calculated?
Intrinsic Value: Projected FCF is calculated from a company's financial statements. For International Business Machines (XSWX:IBM), the current Intrinsic Value: Projected FCF is CHF123.01 as of Aug. 23, 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 undervalued.
The current stock price of CHF189.32 is trading 2.7% below its estimated GF Value™ of CHF194.52.
Key valuation signals for XSWX:IBM:
Intrinsic Value: Projected FCF: CHF123.01 (12848% above median its 10-year median of 0.95)
GF Value™: CHF194.52 vs. price of CHF189.32 (2.7% below fair value)
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.
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
Get the complete analysis for XSWX:IBM
Intrinsic Value: Projected FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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