International Business Machines (CHIX:IBMD) 1-Year Sharpe Ratio: -0.28 (As of Jul. 19, 2026)

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CHIX:IBMD International Business Machines Corp CHIX:IBMD
80 GF Score
Price €195.00
GF Value €241.17
Valuation Modestly Undervalued
! 1 Warning Sign
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What is International Business Machines 1-Year Sharpe Ratio?

International Business Machines CHIX:IBMD 80 1-Year Sharpe Ratio is -0.28 as of Jul. 19, 2026. GuruFocus rates CHIX:IBMD with a GF Score™ of 80/100 and a GF Value™ of €241.17 (Modestly Undervalued). The stock has 1 warning sign investors should review.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-19), International Business Machines's 1-Year Sharpe Ratio is -0.28.

International Business Machines  (CHIX:IBMd) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.

International Business Machines 1-Year Sharpe Ratio Related Terms

CHIX:IBMD vs ACN, FISV, FIS: 1-Year Sharpe Ratio Comparison

For the Information Technology Services subindustry, International Business Machines's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Software Industry

For the Software industry and Technology sector, International Business Machines's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where International Business Machines's 1-Year Sharpe Ratio falls into.


CHIX:IBMD
80GF Score
International Business Machines Corp CHIX:IBMD
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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International Business Machines 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of -0.28 mean?
International Business Machines (CHIX:IBMD) has a 1-Year Sharpe Ratio of -0.28 as of Jul. 19, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for International Business Machines and its competitors.
Is International Business Machines' 1-Year Sharpe Ratio too high?
International Business Machines' current 1-Year Sharpe Ratio is -0.28. Overall, International Business Machines has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' 1-Year Sharpe Ratio compare to ACN and FISV?
International Business Machines' 1-Year Sharpe Ratio of -0.28 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Software company?
A good 1-Year Sharpe Ratio depends on the Software industry context. However, 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for International Business Machines and its competitors. International Business Machines's current 1-Year Sharpe Ratio is -0.28. 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 (CHIX:IBMD) is currently considered Modestly Undervalued. The stock's GF Value™ is €241.17, compared to a current price of €195.00 — trading 19.1% below its estimated fair value. The current 1-Year Sharpe Ratio is -0.28. 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 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For International Business Machines (CHIX:IBMD), the current 1-Year Sharpe Ratio is -0.28 as of Jul. 19, 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 (CHIX:IBMD) Overvalued in 2026?

Based on GuruFocus' analysis, International Business Machines stock appears to be undervalued. The current stock price of €195.00 is trading 19.1% below its estimated GF Value™ of €241.17. GuruFocus considers International Business Machines to be Modestly Undervalued.

Key valuation signals for CHIX:IBMD:

  • 1-Year Sharpe Ratio: -0.28
  • GF Value™: €241.17 vs. price of €195.00 (19.1% below fair value)
  • GF Score™: 80/100 with 1 warning sign

No single metric tells the full story. See the CHIX:IBMD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

International Business Machines Business Description

Address One New Orchard Road, Armonk, NY, USA, 10504
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

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1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€195.00
Price
€241.17
GF Value