OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
International Business Machines OCF Yield % Explanation
Similar to Earnings Yield %, OCF 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 operating 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 OCF Yield % Related Terms
International Business Machines OCF 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.
MEX:IBM vs ACN, FISV, CTSH: OCF Yield % Comparison
For the Information Technology Services subindustry, International Business Machines's OCF Yield %, along with its competitors' market caps and OCF 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 OCF Yield % vs Software Industry
For the Software industry and Technology sector, International Business Machines's OCF Yield % distribution charts can be found below:
* The bar in red indicates where International Business Machines's OCF 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 (MEX:IBM) has a OCF Yield % of 5.48 as of Jun. 27, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on International Business Machines and its competitors. This is 51% below median its historical median of 11.18. Over the past decade, International Business Machines' OCF Yield % has ranged from 4.52 to 18.14. According to the industry distribution chart, International Business Machines ranks #1126 out of 2868 companies in the Software industry, placing it in the top 39.3%.
Is International Business Machines' OCF Yield % too high?
International Business Machines' current OCF Yield % of 5.48 is 51% below median its 10-year median of 11.18. Over the past 10 years, this metric has ranged from a low of 4.52 to a high of 18.14. The Software industry median OCF Yield % is 3.17. International Business Machines' value of 5.48 is 73.1% above this industry median. Based on the distribution chart, International Business Machines ranks #1126 out of 2868 companies in the Software industry, which is above the industry midpoint. Overall, International Business Machines has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' OCF Yield % compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #1126 out of 2868 companies for OCF Yield %. This puts International Business Machines in the upper half of its industry. The industry median OCF Yield % is 3.17. International Business Machines' value of 5.48 is 73.1% above this benchmark. Historically, International Business Machines' own OCF Yield % has ranged from 4.52 to 18.14 over the past decade. While the company's 10-year median is 11.18 vs. the industry median of 3.17, 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 OCF Yield % for a Software company?
The median OCF Yield % among Software companies is 3.17, based on 2,868 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current OCF Yield % of 5.48 is 73.1% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on International Business Machines and its competitors. For the Software industry, the median OCF Yield % is 3.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current OCF Yield % is 5.48, which is 51% below median its own 10-year median of 11.18. 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 (MEX:IBM) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN4,156.89, compared to a current price of MXN4,726.00 — trading 13.7% above its estimated fair value. The current OCF Yield % is 5.48, which is 51% below median its 10-year median of 11.18 and 73.1% above the Software industry median of 3.17. International Business Machines' overall GF Score™ is 68/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For International Business Machines (MEX:IBM), the current OCF Yield % is 5.48 as of Jun. 27, 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 (MEX:IBM) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be overvalued.
The current stock price of MXN4,726.00 is trading 13.7% above its estimated GF Value™ of MXN4,156.89.
GuruFocus considers International Business Machines to be Modestly Overvalued.
Key valuation signals for MEX:IBM:
OCF Yield %: 5.48 (51% below median its 10-year median of 11.18)
GF Value™: MXN4,156.89 vs. price of MXN4,726.00 (13.7% above fair value)
Industry Position: 73.1% above the Software median (#1126 of 2868)
No single metric tells the full story. See the MEX: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.
68GF Score
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