International Business MachinesXBUL:IBM 76 Median PS Value is €114.93 as of Jul. 03, 2026, which is 100% below its 10-year median of 1.10. GuruFocus rates XBUL:IBM with a GF Score™ of 76/100 and a GF Value™ of €191.71 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,069 Software companies, International Business Machines ranks worse than 89.43% on this metric.
This valuation method assumes that the stock valuation will revert to its historical (10-Year) median in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
The historical rank and industry rank for International Business Machines's Median PS Value or its related term are showing as below:
XBUL:IBM'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.7 Med: 1.1 Max: 2.28
Current: 2.02
During the past 13 years, the highest Price to Median PS Value of International Business Machines was 2.28. The lowest was 0.70. And the median was 1.10.
XBUL:IBM's Price-to-Median-PS-Value is ranked worse than 89.43% of 1069
companies
in the Software industry
Industry Median: 0.82
vs XBUL:IBM: 2.02
International Business Machines (XBUL:IBM) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
International Business Machines's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
232.10
/
114.93
=
2.02
* 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 Median PS Value Related Terms
International Business Machines Median PS Value 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 Median PS Value Chart
XBUL:IBM vs ACN, FISV, FIS: Median PS Value Comparison
For the Information Technology Services subindustry, International Business Machines's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value 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-Median-PS-Value vs Software Industry
For the Software industry and Technology sector, International Business Machines's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where International Business Machines's Price-to-Median-PS-Value falls into.
10-Year Median PS Ratio is 1.8447.
International Business Machines's Revenue per Share 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 €62.303.
* 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 (XBUL:IBM) has a Median PS Value of €114.93 as of Jul. 03, 2026. Median price-sales value is the stock value based on a company's 10-year median price-sales ratio, View historical data on International Business Machines and its competitors. This is 10348% above median its historical median of 1.10. Over the past decade, International Business Machines' Median PS Value has ranged from 0.70 to 2.28. According to the industry distribution chart, International Business Machines ranks #956 out of 1069 companies in the Software industry, placing it in the top 89.4%.
Is International Business Machines' Median PS Value too high?
International Business Machines' current Median PS Value of €114.93 is 10348% above median its 10-year median of 1.10. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 2.28. Based on the distribution chart, International Business Machines ranks #956 out of 1069 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, International Business Machines has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' Median PS Value compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #956 out of 1069 companies for Median PS Value. This places International Business Machines in the lower half of its industry. The industry median Median PS Value is 0.82. Historically, International Business Machines' own Median PS Value has ranged from 0.70 to 2.28 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 Median PS Value for a Software company?
The median Median PS Value among Software companies is 0.82, based on 1,069 companies in the industry. Companies in the top quartile (top 25%) have a Median PS Value significantly above this median, while those in the bottom quartile fall well below. However, Median PS Value 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 Median PS Value mean?
A high Median PS Value can signal that a stock is expensive relative to its fundamentals. Median price-sales value is the stock value based on a company's 10-year median price-sales ratio, View historical data on International Business Machines and its competitors. For the Software industry, the median Median PS Value is 0.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current Median PS Value is €114.93, which is 10348% above median its own 10-year median of 1.10. 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 (XBUL:IBM) is currently considered Modestly Overvalued. The stock's GF Value™ is €191.71, compared to a current price of €232.10 — trading 21.1% above its estimated fair value. The current Median PS Value is €114.93, which is 10348% above median its 10-year median of 1.10. International Business Machines' overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Median PS Value calculated?
Median PS Value is calculated from a company's financial statements. For International Business Machines (XBUL:IBM), the current Median PS Value is €114.93 as of Jul. 03, 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 (XBUL:IBM) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be overvalued.
The current stock price of €232.10 is trading 21.1% above its estimated GF Value™ of €191.71.
GuruFocus considers International Business Machines to be Modestly Overvalued.
Key valuation signals for XBUL:IBM:
Median PS Value: €114.93 (10348% above median its 10-year median of 1.10)
GF Value™: €191.71 vs. price of €232.10 (21.1% above fair value)
No single metric tells the full story. See the XBUL: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.
76GF Score
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