Question 1

What is IBM's P/B ratio?

Accepted Answer

IBM (IBM) P/B ratio is 8.2× as of June 5, 2026. The ratio is calculated by dividing market capitalisation by book value of equity, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/B ratio calculated?

Accepted Answer

P/B = Market Capitalisation ÷ Book Value of Equity (most recent quarterly shareholders' equity), or equivalently Share Price ÷ Book Value Per Share. 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/B ratio?

Accepted Answer

The price-to-book (P/B) ratio compares a company's market capitalisation to its book value of equity (total shareholders' equity) on the most recent quarterly balance sheet. It is calculated as market cap ÷ book value of equity (equivalent to share price ÷ book value per share). A P/B below 1× implies the market values the business below its accounting net worth; values well above 1× reflect intangible assets, brand value, or a high return on equity.

Question 4

What is a good P/B ratio for IBM?

Accepted Answer

A "good" P/B depends on the business model. Banks, insurers, and other capital-heavy financials typically trade near 1×; asset-light technology and consumer-brand companies can sustainably trade at 5×+ because much of their value is intangible. P/B is most informative when paired with return on equity (ROE). For IBM specifically, the relevant sector benchmark is the current sector median of 6.0×.

Question 5

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

Accepted Answer

IBM's P/B ratio of 8.2× is above its own 5-year average of 6.9× and above the sector median of 6.0×. That places the current reading at the 73th 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/B ratio range?

Accepted Answer

In the available daily series, IBM (IBM) P/B ratio has ranged from a low of 3.4× in 2006 to a high of 12.8× in 2014. The 5-year average is 6.9× and the 5-year median is 6.6×.

Question 7

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

Accepted Answer

IBM (IBM) P/B ratio at the end of 2025 was 8.5×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month book value figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (book value). 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	$277.40B	$32.65B	8.5×	+1.0×	Dec 31, 2025
2024	$203.56B	$27.31B	7.5×	+0.8×	Dec 31, 2024
2023	$149.60B	$22.53B	6.6×	+0.8×	Dec 31, 2023
2022	$127.62B	$21.94B	5.8×	-0.5×	Dec 31, 2022
2021	$119.76B	$18.90B	6.3×	+1.1×	Dec 31, 2021
2020	$107.42B	$20.60B	5.2×	-0.2×	Dec 31, 2020
2019	$113.68B	$20.84B	5.5×	-0.4×	Dec 31, 2019
2018	$97.94B	$16.80B	5.8×	-1.9×	Dec 31, 2018
2017	$135.60B	$17.59B	7.7×	-0.5×	Dec 31, 2017
2016	$150.53B	$18.25B	8.3×	-0.7×	Dec 31, 2016
2015	$127.54B	$14.26B	8.9×	-3.9×	Dec 31, 2015
2014	$151.91B	$11.87B	12.8×	+4.4×	Dec 31, 2014
2013	$192.32B	$22.79B	8.4×	-2.5×	Dec 31, 2013
2012	$205.97B	$18.86B	10.9×	+0.7×	Dec 31, 2012
2011	$206.06B	$20.14B	10.2×	+2.7×	Dec 31, 2011
2010	$174.00B	$23.05B	7.6×	+0.3×	Dec 31, 2010
2009	$164.98B	$22.64B	7.3×	-0.7×	Dec 31, 2009
2008	$108.16B	$13.46B	8.0×	+3.0×	Dec 31, 2008
2007	$142.93B	$28.47B	5.0×	+0.1×	Dec 31, 2007
2006	$139.27B	$28.51B	4.9×	+1.2×	Dec 31, 2006
2005	$122.95B	$33.10B	3.7×	-1.4×	Dec 31, 2005
2004	$153.49B	$29.75B	5.2×	-0.2×	Dec 31, 2004
2003	$149.88B	$27.86B	5.4×	-0.1×	Dec 31, 2003
2002	$125.89B	$22.78B	5.5×	-2.9×	Dec 31, 2002
2001	$198.72B	$23.61B	8.4×	—	Dec 31, 2001


Duolingo (DUOL)	3.3×
Unity Software (U)	3.2×
Synopsys (SNPS)	3.0×
Science Applications International (SAIC)	2.9×
Zebra Technologies (ZBRA)	2.9×
Zoom Communications (ZM)	2.9×
Trimble (TRMB)	2.7×
Twilio (TWLO)	2.5×
Amkor Technology (AMKR)	2.5×
EPAM Systems (EPAM)	2.1×
Qorvo (QRVO)	2.1×
IonQ (IONQ)	2.1×
Intel (INTC)	2.0×
Roper Technologies (ROP)	2.0×
Cognizant (CTSH)	1.9×
Okta (OKTA)	1.9×
Super Micro Computer (SMCI)	1.8×
Lyft (LYFT)	1.7×
Block (XYZ)	1.7×
Block (SQ)	1.6×
Hewlett Packard Enterprise (HPE)	1.5×
Fidelity National Information Services (FIS)	1.5×
Skyworks Solutions (SWKS)	1.4×
Fiserv (FISV)	1.1×
Strategy (MSTR)	0.9×

P/B Ratio for IBM (IBM)

P/B Ratio daily chart for IBM (IBM)

Historical P/B Ratio for IBM (IBM) from 2001 to 2025

About P/B Ratio at IBM (IBM)

IBM P/B Ratio by Year

IBM P/B Ratio 2025: 8.5×

IBM P/B Ratio 2024: 7.5×

IBM P/B Ratio 2023: 6.6×

IBM P/B Ratio 2022: 5.8×

IBM P/B Ratio 2021: 6.3×

Sector peers by P/B Ratio — chart

Sector peers by P/B Ratio — table

Frequently asked questions

IBM (IBM) Key Financials

P/B Ratio daily chart for IBM (IBM)

Historical P/B Ratio for IBM (IBM) from 2001 to 2025

About P/B Ratio at IBM (IBM)

IBM P/B Ratio by Year

IBM P/B Ratio 2025: 8.5×

IBM P/B Ratio 2024: 7.5×

IBM P/B Ratio 2023: 6.6×

IBM P/B Ratio 2022: 5.8×

IBM P/B Ratio 2021: 6.3×

Sector peers by P/B Ratio — chart

Sector peers by P/B Ratio — table

Frequently asked questions

+What is IBM's P/B ratio?

+How is the P/B ratio calculated?

+What is the P/B ratio?

+What is a good P/B ratio for IBM?

+Is IBM's P/B ratio high or low?

+What is IBM's historical P/B ratio range?

+What was IBM's P/B ratio in 2025?

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

IBM (IBM) Key Financials