IBM
International Business Machines
PE ratio, current and historical analysis
- Stocks
- Technology
- NYSE: IBM
- PE Ratio
The current PE ratio for International Business Machines stock as of Jul 20, 2026 is 18.47. This is calculated based on the TTM EPS of $11.53 and the stock price of $213 per share. The PE ratio has decreased by 42% from its last 4 quarters average of 31.7.
IBM PE ratio history
The average historical PE ratio of International Business Machines for the last ten years is 26.32. The current price-to-earnings ratio of 18.47 is 30% less than the historical average. Analyzing the last ten years, IBM's PE ratio reached its highest point in the Sep 2022 quarter at 83.67, when the price was $118.81 and the EPS was $1.42. The lowest point was recorded in the Mar 2020 quarter, when it reached 10.91 with a price of $110.93 and an EPS of $10.17.
International Business Machines PE ratio by year
Maximum annual increase: 273.33% in 2022
Maximum annual decrease: -74.5% in 2023
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| 2025 | 26.07 | -22.43% | $296.21 | $11.36 |
| 2024 | 33.61 | 69.32% | $219.83 | $6.54 |
| 2023 | 19.85 | -74.5% | $163.55 | $8.24 |
| 2022 | 77.84 | 273.33% | $140.89 | $1.81 |
| 2021 | 20.85 | 4.04% | $133.66 | $6.41 |
| 2020 | 20.04 | 58.92% | $125.88 | $6.28 |
| 2019 | 12.61 | 6.14% | $134.04 | $10.63 |
| 2018 | 11.88 | -52.23% | $113.67 | $9.57 |
| 2017 | 24.87 | 86.29% | $153.42 | $6.17 |
| 2016 | 13.35 | 30.75% | $165.99 | $12.43 |
| 2015 | 10.21 | -23.81% | $137.62 | $13.48 |
| 2014 | 13.4 | 7.63% | $160.44 | $11.97 |
| 2013 | 12.45 | -5.54% | $187.57 | $15.06 |
| 2012 | 13.18 | -5.04% | $191.55 | $14.53 |
| 2011 | 13.88 | 10.6% | $183.88 | $13.25 |
International Business Machines PE ratio by quarter (TTM)
| Year | PE ratio | PE change | Price | EPS |
|---|---|---|---|---|
| Mar 2026 | 21.02 | -19.37% | $242.39 | $11.53 |
| Dec 2025 | 26.07 | -21.19% | $296.21 | $11.36 |
| Sep 2025 | 33.08 | -29.3% | $282.16 | $8.53 |
| Jun 2025 | 46.79 | 11.59% | $294.78 | $6.3 |
| Mar 2025 | 41.93 | 24.75% | $248.66 | $5.93 |
| Dec 2024 | 33.61 | 6.26% | $219.83 | $6.54 |
| Sep 2024 | 31.63 | 68.6% | $221.08 | $6.99 |
| Jun 2024 | 18.76 | -11.88% | $172.95 | $9.22 |
| Mar 2024 | 21.29 | 7.25% | $190.96 | $8.97 |
| Dec 2023 | 19.85 | 7.94% | $163.55 | $8.24 |
| Sep 2023 | 18.39 | -69.49% | $140.3 | $7.63 |
| Jun 2023 | 60.27 | -7.13% | $133.81 | $2.22 |
| Mar 2023 | 64.9 | -16.62% | $131.09 | $2.02 |
| Dec 2022 | 77.84 | -6.97% | $140.89 | $1.81 |
| Sep 2022 | 83.67 | 268.59% | $118.81 | $1.42 |
IBM Price vs fair value
IBM average PE ratio chart
What this chart measures
The Historical Valuation Regime chart shows where the stock's current valuation sits relative to its own historical valuation range over the selected lookback period.
This is a history-relative tool, not a market-relative percentile. It does not compare the stock to other companies. Instead, it compares each historical valuation reading to the stock's own past readings.
Percentile logic
The threshold lines are calculated them from the stock's real historical values using percentile interpolation. That is why some colored bands are narrow while others are wide: the band widths reflect how the stock actually traded through time.
Regime map
| Historical percentile | Regime | Chart meaning |
|---|---|---|
| 0-10 | Historically Low | Deep cheap zone |
| >10-25 | Below Average | Cheap relative to history |
| >25-75 | Average | Within the normal historical range |
| >75-90 | Above Average | Expensive relative to history |
| >90-100 | Historically High | Extreme or stretched valuation |
How to read each part
| Chart element | What it tells you |
|---|---|
| Main line | The actual historical valuation values over time for the selected metric. |
| Dashed horizontal lines | The stock's computed P10, P25, Median, P75, and P90 thresholds for the selected period. |
| Colored bands | The historical valuation zones between those thresholds. |
| Metric boxes | Current ratio, historical median, current percentile, and current regime. |
| Timeline strip | A condensed regime history showing how the stock moved between cheap, fair, and expensive states across each observation. |
Important metric definitions
Current Percentile is the percentile rank of the latest valid historical observation within the selected lookback range.
Current Regime is assigned directly from the latest observation's percentile bucket using the fixed 10 / 25 / 75 / 90 cutoffs shown above.
How to use it well
This chart is most useful for answering a narrow question: Is this stock trading high, low, or normal relative to its own history? It works best alongside growth, profitability, and forward-looking business analysis, because a stock can deserve a higher or lower regime if its business quality has changed.
Currently, IBM's PE ratio is under its 3, 5 and 10-year averages.
PE comparison
With a price to earnings (P/E) of 18.47, IBM stands lower than the Technology sector, the industry and its peers average. Looking at the Technology sector average of 35.93, International Business Machines's price to earnings (P/E) is 49% lower.
IBM PE vs peers
IBM's PE ratio is less than its peer stocks AAPL and GOOGL, but it is above ACN's and HPQ's. International Business Machines's current PE ratio of 18.47 is less than the average of its peers, which is 24.53.
| Stock name | PE ratio | Market cap |
|---|---|---|
| HPQ Hp Inc | 8.87 | $22.15B |
| ACN Accenture plc | 11.46 | $96.65B |
| IBM International Business Machines Corp | 18.47 | $200.2B |
| ORCL Oracle Corp | 20.43 | $349.63B |
| MSFT Microsoft Corp | 23.86 | $2.99T |
| GOOGL Alphabet Inc | 26.59 | $4.26T |
| DBD Diebold Nixdorf Inc | 28.83 | $2.96B |
| CSCO Cisco Systems Inc | 36.78 | $436.32B |
| AAPL Apple Inc | 39.4 | $4.8T |
| INTC Intel Corp | N/A | $487.82B |
Frequently asked questions
What is International Business Machines's PE ratio?
The price to earnings ratio for IBM stock as of Jul 20, 2026, stands at 18.47.
What is the 3-year average PE ratio for International Business Machines (IBM)?
The 3-year average PE ratio for IBM stock is 28.4.
What is the 5-year average PE ratio for International Business Machines (IBM)?
The 5-year average PE ratio for IBM stock is 36.31.
What is the highest PE ratio for IBM?
Over the last ten years, the Sep 2022 quarter recorded the highest quarterly PE ratio at 83.67.
How does the current PE ratio for IBM compare to its historical average?
The current PE ratio of IBM is 30% lower than the 10-year historical average.
How is IBM's PE ratio calculated (International Business Machines PE ratio formula)?
To determine the P/E ratio, divide the latest stock price by the TTM earnings per share (EPS). As of today (Jul 20, 2026), International Business Machines's share price is $213. The company's earnings per share for the trailing twelve months (TTM) ending Mar 2026 is $11.53. Therefore, International Business Machines's price to earnings ratio for today is 18.47. PE RATIO(18.47) = STOCK PRICE($213) / TTM EPS($11.53)
All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.