Question 1

What is IBM's P/FCF ratio?

Accepted Answer

IBM (IBM) P/FCF ratio is 13.8× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for IBM?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For IBM specifically, the relevant sector benchmark is the current sector median of 21.8×.

Question 5

Is IBM's P/FCF ratio high or low?

Accepted Answer

IBM's P/FCF ratio of 13.8× is below its own 5-year average of 14.7× and below the sector median of 21.8×. That places the current reading at the 36th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is IBM's historical P/FCF ratio range?

Accepted Answer

In the available daily series, IBM (IBM) P/FCF ratio has ranged from a low of 7.2× in 2020 to a high of 24.0× in 2026. The 5-year average is 14.7× and the 5-year median is 14.4×.

Question 7

What was IBM's P/FCF ratio in 2025?

Accepted Answer

IBM (IBM) P/FCF ratio at the end of 2025 was 22.6×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does IBM's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$277B	$12.3B	22.6×	+5.3×	Dec 31, 2025
2024	$204B	$11.8B	17.3×	+5.0×	Dec 31, 2024
2023	$150B	$12.1B	12.3×	-2.7×	Dec 31, 2023
2022	$128B	$8.46B	15.1×	+3.1×	Dec 31, 2022
2021	$120B	$10B	11.9×	+4.8×	Dec 31, 2021
2020	$107B	$15B	7.2×	-2.4×	Dec 31, 2020
2019	$114B	$11.9B	9.6×	+0.9×	Dec 31, 2019
2018	$97.9B	$11.3B	8.7×	-1.8×	Dec 31, 2018
2017	$136B	$13B	10.5×	-1.5×	Dec 31, 2017
2016	$151B	$12.6B	11.9×	+2.0×	Dec 31, 2016
2015	$128B	$12.9B	9.9×	-2.1×	Dec 31, 2015
2014	$152B	$12.7B	12.0×	-2.4×	Dec 31, 2014
2013	$192B	$13.3B	14.4×	+0.6×	Dec 31, 2013
2012	$206B	$14.9B	13.9×	+0.3×	Dec 31, 2012
2011	$206B	$15.2B	13.6×	+1.3×	Dec 31, 2011
2010	$174B	$14.2B	12.2×	+2.4×	Dec 31, 2010
2009	$165B	$16.7B	9.9×	+2.1×	Dec 31, 2009
2008	$108B	$13.9B	7.8×	-5.7×	Dec 31, 2008
2007	$143B	$10.6B	13.5×	-0.6×	Dec 31, 2007
2006	$139B	$9.85B	14.1×	+1.4×	Dec 31, 2006
2005	$123B	$9.68B	12.7×	-2.2×	Dec 31, 2005
2004	$153B	$10.3B	14.9×	-0.1×	Dec 31, 2004
2003	$150B	$10B	15.0×	-0.2×	Dec 31, 2003
2002	$126B	$8.31B	15.1×	—	Dec 31, 2002


First Solar (FSLR)	12.7×
Zebra Technologies (ZBRA)	12.2×
Skyworks Solutions (SWKS)	11.9×
Cognizant (CTSH)	11.8×
NetApp (NTAP)	11.5×
Duolingo (DUOL)	11.1×
Block (XYZ)	11.0×
QUALCOMM (QCOM)	10.8×
Leidos Holdings (LDOS)	10.8×
Workday (WDAY)	10.5×
Salesforce (CRM)	10.5×
Qorvo (QRVO)	10.4×
Adobe (ADBE)	9.8×
Accenture (ACN)	9.6×
Strategy (MSTR)	9.2×
Gartner (IT)	8.8×
Fidelity National Information Services (FIS)	8.7×
DocuSign (DOCU)	8.0×
Gen Digital (GEN)	7.5×
Fiserv (FISV)	7.2×
Science Applications International (SAIC)	7.0×
Hewlett Packard Enterprise (HPE)	6.8×
GoDaddy (GDDY)	6.7×
HP (HPQ)	5.1×
Lyft (LYFT)	4.5×

P/FCF Ratio for IBM (IBM) 2002-2026

P/FCF Ratio daily chart for IBM (IBM)

Historical P/FCF Ratio for IBM (IBM) from 2002 to 2025

About P/FCF Ratio at IBM (IBM)

IBM P/FCF Ratio by Year

IBM P/FCF Ratio 2025: 22.6×

IBM P/FCF Ratio 2024: 17.3×

IBM P/FCF Ratio 2023: 12.3×

IBM P/FCF Ratio 2022: 15.1×

IBM P/FCF Ratio 2021: 11.9×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

IBM (IBM) Key Financials