Question 1

What is IBM's P/B ratio?

Accepted Answer

IBM (IBM) P/B ratio is 5.7× as of July 22, 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 5.6×.

Question 5

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

Accepted Answer

IBM's P/B ratio of 5.7× is below its own 5-year average of 6.6× and above the sector median of 5.6×. That places the current reading at the 19th 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 6.6× 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	$277B	$32.6B	8.5×	+1.0×	Dec 31, 2025
2024	$204B	$27.3B	7.5×	+0.8×	Dec 31, 2024
2023	$150B	$22.5B	6.6×	+0.8×	Dec 31, 2023
2022	$128B	$21.9B	5.8×	-0.5×	Dec 31, 2022
2021	$120B	$18.9B	6.3×	+1.1×	Dec 31, 2021
2020	$107B	$20.6B	5.2×	-0.2×	Dec 31, 2020
2019	$114B	$20.8B	5.5×	-0.4×	Dec 31, 2019
2018	$97.9B	$16.8B	5.8×	-1.9×	Dec 31, 2018
2017	$136B	$17.6B	7.7×	-0.5×	Dec 31, 2017
2016	$151B	$18.2B	8.3×	-0.7×	Dec 31, 2016
2015	$128B	$14.3B	8.9×	-3.9×	Dec 31, 2015
2014	$152B	$11.9B	12.8×	+4.4×	Dec 31, 2014
2013	$192B	$22.8B	8.4×	-2.5×	Dec 31, 2013
2012	$206B	$18.9B	10.9×	+0.7×	Dec 31, 2012
2011	$206B	$20.1B	10.2×	+2.7×	Dec 31, 2011
2010	$174B	$23B	7.6×	+0.3×	Dec 31, 2010
2009	$165B	$22.6B	7.3×	-0.7×	Dec 31, 2009
2008	$108B	$13.5B	8.0×	+3.0×	Dec 31, 2008
2007	$143B	$28.5B	5.0×	+0.1×	Dec 31, 2007
2006	$139B	$28.5B	4.9×	+1.2×	Dec 31, 2006
2005	$123B	$33.1B	3.7×	-1.4×	Dec 31, 2005
2004	$153B	$29.7B	5.2×	-0.2×	Dec 31, 2004
2003	$150B	$27.9B	5.4×	-0.1×	Dec 31, 2003
2002	$126B	$22.8B	5.5×	—	Dec 31, 2002


Science Applications International (SAIC)	2.9×
Zebra Technologies (ZBRA)	2.9×
Zoom Communications (ZM)	2.9×
Fortive (FTV)	2.9×
IREN (IREN)	2.8×
Trimble (TRMB)	2.7×
Twilio (TWLO)	2.5×
Amkor Technology (AMKR)	2.5×
First Solar (FSLR)	2.1×
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×
Hewlett Packard Enterprise (HPE)	1.5×
Fidelity National Information Services (FIS)	1.5×
Skyworks Solutions (SWKS)	1.4×
Fiserv (FISV)	1.1×
Sunrun (RUN)	1.0×
Strategy (MSTR)	0.9×

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

P/B Ratio daily chart for IBM (IBM)

Historical P/B Ratio for IBM (IBM) from 2002 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