Valuation models
price $257.81 · as of Nov 2, 2026
DCF · Perpetuity growth · 5yused188.67 – 323.95240.817% overvaluedDCF · Perpetuity growth · 10y202.07 – 340.76255.581% overvaluedDCF · EBITDA exit · 5y236.75 – 261.58248.834% overvaluedDCF · EBITDA exit · 10y240.18 – 286.49262.242% undervaluedP/E · peers196.43 – 324.41234.2110% overvaluedP/E · own history250.15 – 527.27292.0612% undervaluedPEG—99.22160% overvaluedEV/EBITDA · peers139.42 – 226.41171.3750% overvaluedEV/Revenue · peers59.27 – 411.58234.7410% overvaluedEarnings power value42.16 – 92.1662.06315% overvaluedDividend discount79.72 – 194.49116.63121% overvaluedWall St. consensus target—260.001% belowCost of capital (WACC)—7.36%—
DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. How the headline model is chosen.
Model value · DCF · Perpetuity growth · 5y
240.81
IBM closed at $257.81 — overvalued by 7% vs model.
188.67the model's range323.95
DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.
Other models
62.06 – 292.06
Wall St. target
260.00 1% below
Above model, 1y
76 of 88 days
How it is valued
Valued asMature & stable
Low/slowing growth (~4% recent)Moderate margins (16% net margin)Pays dividendsHighly cyclical earningsHigh leverage (D/E 2.1x)
Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; how each model works is in the manual.