IBM International Business Machines Corporation
NYSE · Information Technology · Computer & office Equipment · Market cap $209.8B · $222.64 on 2026-10-02
Above StickerTier CFiscal-year data · FY2025
Price moves
1 week-1%
1 month-5%
3 months-23%
6 months-10%
YTD-27%
1 year-23%
Off 52w high-33%
52w range$199–$332
Price and total return
PriceTotal return (dividends reinvested)
Show year-end values
| Year | Price | Dividend-adjusted |
|---|---|---|
| 2016 | $158.69 | $105.59 |
| 2017 | $146.67 | $101.38 |
| 2018 | $108.67 | $78.51 |
| 2019 | $128.15 | $97.02 |
| 2020 | $120.34 | $95.89 |
| 2021 | $133.66 | $111.86 |
| 2022 | $140.89 | $123.76 |
| 2023 | $163.55 | $150.80 |
| 2024 | $219.83 | $210.01 |
| 2025 | $296.21 | $290.30 |
| 2026-10-02 (latest) | $222.64 | $222.64 |
Dividend-adjusted values are back-adjusted to today's price: the gap to the price column is the value of dividends reinvested since then.
Buy (MOS)
$24
$24
Sticker
$49
$49
Ten Cap
$128
$128
Payback Time
$130
$130
Price
$223
$223
Valuation
| Buy (MOS) 50% of Sticker | $24.41 | -89% |
|---|---|---|
| Ten Cap 10× owner earnings − net debt | $128.45 | -42% |
| Payback Time 8-year FCF payback | $130.46 | -41% |
| Sticker Rule #1 intrinsic value | $48.83 | -78% |
| Methods agree price under how many of Ten Cap, Payback, MOS | 0 of 3 | |
| Windage growth g | 5.3% | |
| P/E · 10y median | 19.9× | 21.8× |
| EPS FY2025 | $11.17 | |
| FCF yield | 5.8% | |
| Dividend (TTM) · yield | $6.74 | 3.0% |
| Dividend growth 5y, per year | 1.5% | |
| Total return per year, dividends reinvested · 5y · 10y | 14.9% | 8.1% |
| Revenue · net income last FY | $67.5B | $10.6B |
Big Five 5/15 tests ≥10%
| 10y | 5y | 1y | |
|---|---|---|---|
| ROIC | 11% | 8% | 12% |
| Sales growth | -2% | 4% | 8% |
| EPS growth | -2% | 12% | 74% |
| BVPS growth | 9% | 8% | 18% |
| OCF growth | -3% | -6% | -2% |
| Debt payoff (yrs of FCF) | 4.5 |
Events
Event scan (8-Ks, insider buys, 13Ds) runs for stocks that pass the quality screen.
Discussed on InvestED 8 episodes
- 284 · Investing Q&A: IBM Analysis - What Has Changed?Phil reviews how his view of IBM changed, showing that the moat was right and the management call was wrong, and that when the story changes you exit at once, which a margin of safety makes survivable.
- 112 · Berkshire Hathaway Shareholder Meeting & Apple StockPhil and Danielle go through the 2017 Berkshire meeting (Phil watched the live stream): why book value understates Berkshire, why Buffett won't promise to buy the stock at a set price, how he now sees Apple and IBM, what he and Munger missed in Amazon and Google, and a CEO-polling trick for sizing u
- 095 · Cash Flow & DividendsPhil explains free cash flow and how to test it against earnings, then compares an "equity bond" income strategy (buy 10–20 dividend payers for the yield) with the Rule #1 way: you still need to understand the business, and you should buy it at a good price so you collect both the cash and the appre
- 273 · Four Ms Checklist: Management Analysis Part 3Management is mostly subjective, so Phil and Danielle lean on objective numbers (low debt, high returns on capital, real cash flow) as evidence of good capital allocation, then test the CEO's experience, integrity and pay, using IBM's change of CEO as the live example.
- 003 · Finding a Competitive AdvantageMunger's second filter asks for "intrinsic characteristics" that give a durable competitive advantage. Phil boils these down to five kinds of moat (brand, secrets, switching, toll bridge and price) and shows each with a real company.
- 012 · R.U.L.E.R.S. RulePhil lays out the whole RULERS checklist (Radar, Understand, Love, Event, Reduce basis, Story) as "the scientific method for investing", and argues that a business owner *wants* the price to fall while buying, because the focus is on not losing money, not on a price going up.
- 248 · Robert Shiller & The PE RatioPhil adds Shiller's cyclically adjusted P/E to the Wilshire/GDP ratio as evidence that the market is priced far above history, warns about "bargains" in such a market, and uses buybacks and debt-funded deals as tests of whether management allocates capital well.
- 484 · The Growth ConundrumIf you want a business to grow, you are also wishing for more of it in the world, so Phil and Danielle ask which growing companies you actually want to see double again, and whether giants stay on top forever.