The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, International Business Machines's share price is CHF230.15.
International Business Machines's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2026 was CHF57.90. Hence, International Business Machines's PS Ratio for today is 3.98.
The historical rank and industry rank for International Business Machines's PS Ratio or its related term are showing as below:
XSWX:IBM'
s PS Ratio Range Over the Past 10 Years
Min: 1.22 Med: 2 Max: 4.47
Current: 3.99
During the past 13 years, International Business Machines's highest PS Ratio was 4.47. The lowest was 1.22. And the median was 2.00.
XSWX:IBM's PS Ratio is ranked worse than 69.12% of 2775
companies
in the Software industry
Industry Median: 2.05
vs XSWX:IBM: 3.99
During the past 13 years, International Business Machines's highest 3-Year average Revenue per Share Growth Rate was 13.20% per year. The lowest was -10.00% per year. And the median was 3.60% per year.
Back to Basics: PS Ratio
International Business Machines (XSWX:IBM) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
International Business Machines PS Ratio Related Terms
International Business Machines PS 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 PS Ratio, along with its competitors' market caps and PS 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 PS Ratio vs Software Industry
For the Software industry and Technology sector, International Business Machines's PS Ratio distribution charts can be found below:
* The bar in red indicates where International Business Machines's PS Ratio falls into.
International Business Machines PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
International Business Machines's Share Price of today is CHF230.15. 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 CHF57.90.
* 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:
International Business Machines (XSWX:IBM) has a PS Ratio of 3.98 as of Jul. 06, 2026. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on International Business Machines and its competitors. This is 99% above median its historical median of 2.00. Over the past decade, International Business Machines' PS Ratio has ranged from 1.22 to 4.47. According to the industry distribution chart, International Business Machines ranks #1918 out of 2775 companies in the Software industry, placing it in the top 69.1%.
Is International Business Machines' PS Ratio too high?
International Business Machines' current PS Ratio of 3.98 is 99% above median its 10-year median of 2.00. Over the past 10 years, this metric has ranged from a low of 1.22 to a high of 4.47. The Software industry median PS Ratio is 2.05. International Business Machines' value of 3.98 is 94.1% above this industry median. Based on the distribution chart, International Business Machines ranks #1918 out of 2775 companies in the Software industry, which is below the industry midpoint. Overall, International Business Machines has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' PS Ratio compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #1918 out of 2775 companies for PS Ratio. This places International Business Machines in the lower half of its industry. The industry median PS Ratio is 2.05. International Business Machines' value of 3.98 is 94.1% above this benchmark. Historically, International Business Machines' own PS Ratio has ranged from 1.22 to 4.47 over the past decade. While the company's 10-year median is 2.00 vs. the industry median of 2.05, 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 PS Ratio for a Software company?
The median PS Ratio among Software companies is 2.05, based on 2,775 companies in the industry. Companies in the top quartile (top 25%) have a PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current PS Ratio of 3.98 is 94.1% 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 PS Ratio mean?
A high PS Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on International Business Machines and its competitors. For the Software industry, the median PS Ratio is 2.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current PS Ratio is 3.98, which is 99% above median its own 10-year median of 2.00. 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 (XSWX:IBM) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF187.83, compared to a current price of CHF230.15 — trading 22.5% above its estimated fair value. The current PS Ratio is 3.98, which is 99% above median its 10-year median of 2.00 and 94.1% above the Software industry median of 2.05. International Business Machines' overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PS Ratio calculated?
PS Ratio is calculated from a company's financial statements. For International Business Machines (XSWX:IBM), the current PS Ratio is 3.98 as of Jul. 06, 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 overvalued.
The current stock price of CHF230.15 is trading 22.5% above its estimated GF Value™ of CHF187.83.
GuruFocus considers International Business Machines to be Modestly Overvalued.
Key valuation signals for XSWX:IBM:
PS Ratio: 3.98 (99% above median its 10-year median of 2.00)
GF Value™: CHF187.83 vs. price of CHF230.15 (22.5% above fair value)
Industry Position: 94.1% above the Software median (#1918 of 2775)
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.
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.
69GF Score
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