Assessing Whether International Business Machines Corp (NYSE: IBM) Is Over- Or Undervalued

International Business Machines Corp (IBM) concluded trading on Thursday at a closing price of $258.37, with 3.09 million shares of worth about $797.57 million changed hands on the day. Half year performance of the stock remained positive as price took a surge of 24.16% during that period and on May 22, 2025 the price saw a loss of about -0.96%. Currently the company’s common shares owned by public are about 929.40M shares, out of which, 928.43M shares are available for trading.

Stock saw a price change of -3.12% in past 5 days and over the past one month there was a price change of 5.25%. Year-to-date (YTD), IBM shares are showing a performance of 17.53% which increased to 52.05% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $163.53 but also hit the highest price of $269.28 during that period. The average intraday trading volume for International Business Machines Corp shares is 4.87 million. The stock is currently trading 2.36% above its 20-day simple moving average (SMA20), while that difference is up 5.06% for SMA50 and it goes to 12.43% higher than SMA200.

International Business Machines Corp (NYSE: IBM) currently have 929.40M outstanding shares and institutions hold larger chunk of about 63.98% of that.

The stock has a current market capitalization of $240.13B and its 3Y-monthly beta is at 0.64. PE ratio of stock for trailing 12 months is 44.44, while it has posted earnings per share of $5.81 in the same period. Its PEG reads 7.05 and has Quick Ratio of 0.94 while making debt-to-equity ratio of 2.49. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for IBM, volatility over the week remained 1.21% while standing at 1.47% over the month.

Stock’s fiscal year EPS is expected to rise by 5.84% while it is estimated to increase by 6.35% in next year. EPS is likely to grow at an annualized rate of 6.30% for next 5-years, compared to annual growth of -9.46% made by the stock over the past 5-years.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Oppenheimer on February 11, 2025 offering an Outperform rating for the stock and assigned a target price of $320 to it. On October 02, 2024, DZ Bank Downgrade their recommendations, while on June 24, 2024, Goldman Initiated their ratings for the stock with a price target of $200. Stock get an Underperform rating from Exane BNP Paribas on May 02, 2024.

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