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International Business MachinesIBM +0.08%80 Shiller PE Ratio is 25.01 as of Sep. 05, 2026, which is 121% above its 10-year median of 11.34. GuruFocus rates IBM with a GF Score™ of 80/100 and a GF Value™ of $242.46 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,019 Software companies, International Business Machines ranks better than 53.78% on this metric.
The historical rank and industry rank for International Business Machines's Shiller PE Ratio or its related term are showing as below:
IBM'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 7.08 Med: 11.34 Max: 32.69
Current: 25.01
During the past years, International Business Machines's highest Shiller PE Ratio was 32.69. The lowest was 7.08. And the median was 11.34.
IBM's Shiller PE Ratio is ranked better than 53.78% of 1019
companies
in the Software industry
Industry Median: 27.55
vs IBM: 25.01
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
International Business Machines's adjusted earnings per share data for the three months ended in Jun. 2026 was $2.270. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $9.39 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
International Business Machines (NYSE:IBM) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
International Business Machines Shiller PE Ratio Related Terms
International Business Machines Shiller PE 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.
International Business Machines Shiller PE Ratio Chart
IBM vs ACN, CTSH, FISV: Shiller PE Ratio Comparison
For the Information Technology Services subindustry, International Business Machines's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio vs Software Industry
For the Software industry and Technology sector, International Business Machines's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where International Business Machines's Shiller PE Ratio falls into.
International Business Machines Shiller PE Ratio Calculation
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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.
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
International Business Machines (IBM) has a Shiller PE Ratio of 25.01 as of Sep. 05, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on International Business Machines and its competitors. This is 121% above median its historical median of 11.34. Over the past decade, International Business Machines' Shiller PE Ratio has ranged from 7.08 to 32.69. According to the industry distribution chart, International Business Machines ranks #471 out of 1019 companies in the Software industry, placing it in the top 46.2%.
Is International Business Machines' Shiller PE Ratio too high?
International Business Machines' current Shiller PE Ratio of 25.01 is 121% above median its 10-year median of 11.34. Over the past 10 years, this metric has ranged from a low of 7.08 to a high of 32.69. The Software industry median Shiller PE Ratio is 27.55. International Business Machines' value of 25.01 is 9.2% below this industry median. Based on the distribution chart, International Business Machines ranks #471 out of 1019 companies in the Software industry, which is above the industry midpoint. Overall, International Business Machines has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' Shiller PE Ratio compare to ACN and CTSH?
According to the Software industry distribution chart, International Business Machines ranks #471 out of 1019 companies for Shiller PE Ratio. This puts International Business Machines in the upper half of its industry. The industry median Shiller PE Ratio is 27.55. International Business Machines' value of 25.01 is 9.2% below this benchmark. Historically, International Business Machines' own Shiller PE Ratio has ranged from 7.08 to 32.69 over the past decade. While the company's 10-year median is 11.34 vs. the industry median of 27.55, International Business Machines has consistently been below 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 Shiller PE Ratio for a Software company?
The median Shiller PE Ratio among Software companies is 27.55, based on 1,019 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current Shiller PE Ratio of 25.01 is 9.2% below 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on International Business Machines and its competitors. For the Software industry, the median Shiller PE Ratio is 27.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current Shiller PE Ratio is 25.01, which is 121% above median its own 10-year median of 11.34. 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 (IBM) is currently considered Fairly Valued. The stock's GF Value™ is $242.46, compared to a current price of $234.89 — trading 3.1% below its estimated fair value. The current Shiller PE Ratio is 25.01, which is 121% above median its 10-year median of 11.34 and 9.2% below the Software industry median of 27.55. International Business Machines' overall GF Score™ is 80/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For International Business Machines (IBM), the current Shiller PE Ratio is 25.01 as of Sep. 05, 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 (IBM) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be undervalued.
The current stock price of $234.89 is trading 3.1% below its estimated GF Value™ of $242.46.
GuruFocus considers International Business Machines to be Fairly Valued.
Key valuation signals for IBM:
Shiller PE Ratio: 25.01 (121% above median its 10-year median of 11.34)
GF Value™: $242.46 vs. price of $234.89 (3.1% below fair value)
Industry Position: 9.2% below the Software median (#471 of 1019)
No single metric tells the full story. See the IBM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
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