International Business Machines CorporationOpportunity Rank #234(IBM) Intrinsic Value & DCF Analysis (2026)
Current Price
$287.56
Last updated: Jul 13, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
Trend Score
As of 2026-07-10
The intrinsic value of International Business Machines Corporation (IBM) is estimated at $129.24 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $287.56, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -3.12% long-term growth rate and an 8.00% discount rate (calculated: 6.98%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of International Business Machines Corporation (IBM) is estimated at $129.24 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $287.56, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a -3.12% long-term growth rate and an 8.00% discount rate (calculated: 6.98%), reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Trend Details
Investment Coach
- Price moves to at least a mid-teens discount to fair value.
- Sustained improvement in ROIC versus WACC spread.
- Meaningful shifts in the narrative score direction.
Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates International Business Machines Corporation's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
International Business Machines CorporationTechnology
International Business Machines Corporation (IBM) delivers comprehensive technology solutions and services across the globe. The company's operations are structured into four primary segments: Software, Consulting, Infrastructure, and Financing. The Software division provides hybrid cloud platforms and a range of software offerings, including Red Hat's enterprise open-source solutions. It also develops software for business automation, AIOps and management, integration, and application servers, in addition to data and artificial intelligence tools. This segment further supplies security software and services for threat, data, and identity management, and offers critical transaction processing software that supports essential on-premise workloads for industries such as banking, airlines, and retail. The Consulting arm delivers business transformation services, which encompass strategy development, business process design and operational improvements, data and analytics insights, and system integration. It additionally provides technology consulting and specialized application and cloud platform services. IBM's Infrastructure segment offers both on-premises and cloud-based server and storage solutions, specifically tailored for clients' crucial and regulated operations. It also extends support and solutions for hybrid cloud infrastructure, alongside remanufacturing and remarketing services for used equipment. The Financing segment provides various financial services, such as leasing, installment payment plans, loan financing, and short-term working capital solutions. Originally established in 1911 as the Computing-Tabulating-Recording Co., the company is now known as International Business Machines Corporation and maintains its headquarters in Armonk, New York.