International Business MachinesXSWX:IBM 69 5-Year Yield-on-Cost % is 1.20 as of Jul. 06, 2026, which is 74% below its 10-year median of 4.60. GuruFocus rates XSWX:IBM with a GF Score™ of 69/100 and a GF Value™ of CHF187.83 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,032 Software companies, International Business Machines ranks worse than 56.78% on this metric.
The historical rank and industry rank for International Business Machines's 5-Year Yield-on-Cost % or its related term are showing as below:
XSWX:IBM'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.2 Med: 4.6 Max: 7.27
Current: 1.2
During the past 13 years, International Business Machines's highest Yield on Cost was 7.27. The lowest was 1.20. And the median was 4.60.
XSWX:IBM's 5-Year Yield-on-Cost % is ranked worse than 56.78% of 1032
companies
in the Software industry
Industry Median: 3.01
vs XSWX:IBM: 1.20
International Business Machines (XSWX:IBM) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
International Business Machines 5-Year Yield-on-Cost % Related Terms
XSWX:IBM vs ACN, FISV, FIS: 5-Year Yield-on-Cost % Comparison
For the Information Technology Services subindustry, International Business Machines's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, International Business Machines's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where International Business Machines's 5-Year Yield-on-Cost % falls into.
International Business Machines 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
International Business Machines (XSWX:IBM) has a 5-Year Yield-on-Cost % of 1.20 as of Jul. 06, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on International Business Machines and its competitors. This is 74% below median its historical median of 4.60. Over the past decade, International Business Machines' 5-Year Yield-on-Cost % has ranged from 1.20 to 7.27. According to the industry distribution chart, International Business Machines ranks #586 out of 1032 companies in the Software industry, placing it in the top 56.8%.
Is International Business Machines' 5-Year Yield-on-Cost % too high?
International Business Machines' current 5-Year Yield-on-Cost % of 1.20 is 74% below median its 10-year median of 4.60. Over the past 10 years, this metric has ranged from a low of 1.20 to a high of 7.27. The Software industry median 5-Year Yield-on-Cost % is 3.01. International Business Machines' value of 1.20 is 60.1% below this industry median. Based on the distribution chart, International Business Machines ranks #586 out of 1032 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' 5-Year Yield-on-Cost % compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #586 out of 1032 companies for 5-Year Yield-on-Cost %. This places International Business Machines in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.01. International Business Machines' value of 1.20 is 60.1% below this benchmark. Historically, International Business Machines' own 5-Year Yield-on-Cost % has ranged from 1.20 to 7.27 over the past decade. While the company's 10-year median is 4.60 vs. the industry median of 3.01, 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 5-Year Yield-on-Cost % for a Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.01, based on 1,032 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current 5-Year Yield-on-Cost % of 1.20 is 60.1% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on International Business Machines and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current 5-Year Yield-on-Cost % is 1.20, which is 74% below median its own 10-year median of 4.60. 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 5-Year Yield-on-Cost % is 1.20, which is 74% below median its 10-year median of 4.60 and 60.1% below the Software industry median of 3.01. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For International Business Machines (XSWX:IBM), the current 5-Year Yield-on-Cost % is 1.20 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:
5-Year Yield-on-Cost %: 1.20 (74% below median its 10-year median of 4.60)
GF Value™: CHF187.83 vs. price of CHF230.15 (22.5% above fair value)
Industry Position: 60.1% below the Software median (#586 of 1032)
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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