The historical rank and industry rank for International Business Machines's PB Ratio or its related term are showing as below:
MEX:IBM'
s PB Ratio Range Over the Past 10 Years
Min: 3.88 Med: 6.74 Max: 10.36
Current: 7.74
During the past 13 years, International Business Machines's highest PB Ratio was 10.36. The lowest was 3.88. And the median was 6.74.
MEX:IBM's PB Ratio is ranked worse than 87.07% of 2621
companies
in the Software industry
Industry Median: 2.33
vs MEX:IBM: 7.74
During the past 12 months, International Business Machines's average Book Value Per Share Growth Rate was 21.30% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 12.90% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 9.20% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 6.70% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of International Business Machines was 19.90% per year. The lowest was -24.60% per year. And the median was 3.80% per year.
Back to Basics: PB Ratio
International Business Machines (MEX:IBM) PB Ratio Explanation
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
International Business Machines PB Ratio Related Terms
International Business Machines PB Ratio 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.
For the Information Technology Services subindustry, International Business Machines's PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio vs Software Industry
For the Software industry and Technology sector, International Business Machines's PB Ratio distribution charts can be found below:
* The bar in red indicates where International Business Machines's PB Ratio falls into.
International Business Machines PB Ratio Calculation
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
International Business Machines (MEX:IBM) has a PB Ratio of 7.47 as of Jun. 29, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on International Business Machines and its competitors. This is 11% above median its historical median of 6.74. Over the past decade, International Business Machines' PB Ratio has ranged from 3.88 to 10.36. According to the industry distribution chart, International Business Machines ranks #2282 out of 2621 companies in the Software industry, placing it in the top 87.1%.
Is International Business Machines' PB Ratio too high?
International Business Machines' current PB Ratio of 7.47 is 11% above median its 10-year median of 6.74. Over the past 10 years, this metric has ranged from a low of 3.88 to a high of 10.36. The Software industry median PB Ratio is 2.33. International Business Machines' value of 7.47 is 220.6% above this industry median. Based on the distribution chart, International Business Machines ranks #2282 out of 2621 companies in the Software industry, which is in the bottom quartile relative to peers. 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' PB Ratio compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #2282 out of 2621 companies for PB Ratio. This places International Business Machines in the lower half of its industry. The industry median PB Ratio is 2.33. International Business Machines' value of 7.47 is 220.6% above this benchmark. Historically, International Business Machines' own PB Ratio has ranged from 3.88 to 10.36 over the past decade. While the company's 10-year median is 6.74 vs. the industry median of 2.33, 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 PB Ratio for a Software company?
The median PB Ratio among Software companies is 2.33, based on 2,621 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current PB Ratio of 7.47 is 220.6% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on International Business Machines and its competitors. For the Software industry, the median PB Ratio is 2.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current PB Ratio is 7.47, which is 11% above median its own 10-year median of 6.74. 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 PB Ratio is 7.47, which is 11% above median its 10-year median of 6.74 and 220.6% above the Software industry median of 2.33. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For International Business Machines (MEX:IBM), the current PB Ratio is 7.47 as of Jun. 29, 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:
PB Ratio: 7.47 (11% above median its 10-year median of 6.74)
GF Value™: MXN4,156.89 vs. price of MXN4,726.00 (13.7% above fair value)
Industry Position: 220.6% above the Software median (#2282 of 2621)
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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