IBM
International Business Machines
PEG ratio, current and historical analysis
- Stocks
- Technology
- NYSE: IBM
- PEG Ratio
IBM currently has a PEG ratio reading of 0.24 as of Jul 31, 2026. Dividing the 19.5 PE ratio by the 82.1% earnings growth rate yields this valuation metric. When compared to the trailing four-quarter average of 0.59, IBM's PEG ratio shows a 59% decrease.
IBM PEG ratio history
A eight years lookback shows an average PEG ratio of 2.03 for International Business Machines. Compared to historical data, IBM's 0.24 PEG ratio represents a decrease of 88%. The eight years high occurred in the Dec 2021 quarter at 9.93, reflecting maximum valuation relative to growth. The minimum was hit in the Sep 2023 quarter at 0.04, indicating optimal value relative to growth during that period.
International Business Machines PEG ratio by year
| Year | PEG ratio | PE ratio | Growth YoY |
|---|---|---|---|
| 2025 | 0.35 | 26.07 | 73.7% |
| 2024 | N/A | 33.61 | -20.6% |
| 2023 | 0.06 | 19.85 | 355.2% |
| 2022 | N/A | 77.84 | -71.8% |
| 2021 | 9.93 | 20.85 | 2.1% |
| 2020 | N/A | 20.04 | -40.9% |
| 2019 | 1.14 | 12.61 | 11.1% |
| 2018 | 0.22 | 11.88 | 55.1% |
| 2017 | N/A | 24.87 | -50.4% |
| 2016 | N/A | 13.35 | -7.8% |
| 2015 | 0.81 | 10.21 | 12.6% |
| 2014 | N/A | 13.4 | -20.5% |
| 2013 | 3.46 | 12.45 | 3.6% |
| 2012 | 1.36 | 13.18 | 9.7% |
| 2011 | 1.04 | 13.88 | 13.3% |
International Business Machines PEG ratio by quarter (TTM)
| Year | PEG ratio | PE ratio | Growth YoY |
|---|---|---|---|
| Jun 2026 | 0.3 | 24.52 | 82.1% |
| Mar 2026 | 0.22 | 21.02 | 94.4% |
| Dec 2025 | 0.35 | 26.07 | 73.7% |
| Sep 2025 | 1.5 | 33.08 | 22% |
| Jun 2025 | N/A | 46.79 | -31.7% |
| Mar 2025 | N/A | 41.93 | -33.9% |
| Dec 2024 | N/A | 33.61 | -20.6% |
| Sep 2024 | N/A | 31.63 | -8.4% |
| Jun 2024 | 0.06 | 18.76 | 315.3% |
| Mar 2024 | 0.06 | 21.29 | 344.1% |
| Dec 2023 | 0.06 | 19.85 | 355.2% |
| Sep 2023 | 0.04 | 18.39 | 437.3% |
| Jun 2023 | N/A | 60.27 | -64.3% |
| Mar 2023 | N/A | 64.9 | -67.2% |
| Dec 2022 | N/A | 77.84 | -71.8% |
IBM average PEG ratio chart
Measured against past performance, IBM's PEG ratio is lower than the 3, 5 and 10-year averages.
PEG comparison
With a PEG of 0.24, IBM stands below the Technology sector, the industry and its peers average. Looking at its Technology sector average of 0.74, International Business Machines's PEG is 68% lower.
IBM EPS growth
IBM Price vs fair value
IBM PEG vs peers
Compared to its peers, IBM has a PEG ratio lower than stocks AAPL and MSFT, while greater than GOOGL's and DBD's. At 0.24, International Business Machines's PEG ratio stands lower than the peer group average of 0.95.
| Stock name | PEG ratio | Market cap |
|---|---|---|
| DBD Diebold Nixdorf Inc | 0.02 | $2.6B |
| GOOGL Alphabet Inc - Class A | 0.16 | $4.53T |
| IBM International Business Machines Corp | 0.24 | $213.1B |
| ORCL Oracle Corp | 0.7 | $396.57B |
| MSFT Microsoft Corporation | 0.87 | $3.64T |
| AAPL Apple Inc | 1.07 | $4.45T |
| CSCO Cisco Systems Inc | 1.7 | $452.75B |
| HPQ HP Inc | 2.17 | $24.92B |
| INTC Intel Corp | N/A | $441.9B |
| ACN Accenture plc - Class A | N/A | $112.77B |
Frequently asked questions
What is International Business Machines's PEG ratio?
IBM shows a PEG ratio of 0.24, per Jul 31, 2026 data.
What is the 3-year average PEG ratio for International Business Machines (IBM)?
Over the last 3 years, IBM's PEG ratio has averaged at 0.32.
What is the 5-year average PEG ratio for International Business Machines (IBM)?
Over the last 5 years, IBM's PEG ratio has averaged at 2.46.
What is the highest PEG ratio for IBM?
The Dec 2021 quarter marked the eight years high at 9.93 for IBM's PEG ratio.
How does the current PEG ratio for IBM compare to its historical average?
Compared to the 8-year average, IBM's PEG ratio is 88% lower.
Why is International Business Machines's PEG ratio so low?
The 0.24 PEG ratio for IBM reflects strong earnings growth outpacing the current valuation.
How is IBM's PEG ratio calculated (International Business Machines PEG ratio formula)?
To calculate the PEG ratio, take the company's PE ratio and divide by its earnings per share growth (YoY TTM). As of Jul 31, 2026, International Business Machines has a P/E ratio of 19.5. Earnings grew at 82.1% over the TTM period ending Jun 2026. Applying the formula, this gives a price to earnings growth ratio of 0.24. PEG RATIO(0.24) = PE RATIO(19.5) / EPS GROWTH(82.1%)
All PEG ratio stats are based on quarterly TTM periods, unless otherwise specified.