IBM stock verdict - Value
IBM
International Business Machines
VALUETechnology
$214.19
Buy · weak trend
$214.19
Heavy$192.23Buy$233.43Fair$274.62Exit$302.08
FUNDAMENTAL60
TECHNICAL8
TRUST SCORE
100High
confidence in this read — data completeness, earnings quality & coverage
Downtrend · EMA20 240.56 · EMA50 252.78 · EMA200 260.88 · RSI 34.9 · MACD below signal
PROS
- Trades 22% below the model's fair value ($274.62)
- Strong return on equity of 31.8% (TTM)
- TTM EPS grew 82.7% year-over-year
- Converts 19% of revenue into free cash flow
- High gross margin of 57% (3-yr avg)
CONS
- Rich for its growth rate (PEG 14.7)
- Price is in a downtrend — below key moving averages
✳ Pros and cons are machine-generated from the latest fundamentals and technicals.
EARNINGS QUALITY · we check the accounting so you don't have to
✓Operating cash flow is 125% of net income — profit is backed by real cash
✓Low accruals — reported profit tracks the cash actually generated
✓Receivables growing in line with sales
Analysis as of 2026-07-27 · price live, fundamentals from latest filings
FAQ
Why is IBM rated Value?
IBM (International Business Machines) is rated Value because the model combines fundamentals, price action, and earnings-quality checks. The current signal is Buy · weak trend. Trades 22% below the model's fair value ($274.62) and Strong return on equity of 31.8% (TTM)
Is IBM overvalued right now?
IBM is trading at $214.19 versus an estimated fair value of $274.62. That puts the stock in value territory on this framework. Rich for its growth rate (PEG 14.7) and Price is in a downtrend — below key moving averages
What should I watch before acting on IBM?
Watch the trust score of 100, the earnings-quality checks, and any red flags. Rich for its growth rate (PEG 14.7) and Price is in a downtrend — below key moving averages