Question 1

What is IBM's P/E ratio?

Accepted Answer

IBM (IBM) P/E ratio is 18.3× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. 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/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

What is a good P/E ratio for IBM?

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For IBM specifically, the relevant sector benchmark is the current sector median of 29.4×.

Question 5

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

Accepted Answer

IBM's P/E ratio of 18.3× is below its own 5-year average of 34.6× and below the sector median of 29.4×. That places the current reading at the 0th 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/E ratio range?

Accepted Answer

In the available daily series, IBM (IBM) P/E ratio has ranged from a low of 8.8× in 2008 to a high of 108.0× in 2022. The 5-year average is 34.6× and the 5-year median is 25.6×.

Question 7

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

Accepted Answer

IBM (IBM) P/E ratio at the end of 2025 was 26.2×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). 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	$10.6B	26.2×	-7.6×	Dec 31, 2025
2024	$204B	$6.02B	33.8×	+13.9×	Dec 31, 2024
2023	$150B	$7.5B	19.9×	-57.9×	Dec 31, 2023
2022	$128B	$1.64B	77.8×	+57.0×	Dec 31, 2022
2021	$120B	$5.74B	20.9×	+1.6×	Dec 31, 2021
2020	$107B	$5.59B	19.2×	+7.2×	Dec 31, 2020
2019	$114B	$9.43B	12.1×	+0.8×	Dec 31, 2019
2018	$97.9B	$8.73B	11.2×	-12.4×	Dec 31, 2018
2017	$136B	$5.75B	23.6×	+10.9×	Dec 31, 2017
2016	$151B	$11.9B	12.7×	+3.0×	Dec 31, 2016
2015	$128B	$13.2B	9.7×	-3.0×	Dec 31, 2015
2014	$152B	$12B	12.6×	+1.0×	Dec 31, 2014
2013	$192B	$16.5B	11.7×	-0.7×	Dec 31, 2013
2012	$206B	$16.6B	12.4×	-0.6×	Dec 31, 2012
2011	$206B	$15.9B	13.0×	+1.3×	Dec 31, 2011
2010	$174B	$14.8B	11.7×	-0.6×	Dec 31, 2010
2009	$165B	$13.4B	12.3×	+3.5×	Dec 31, 2009
2008	$108B	$12.3B	8.8×	-5.0×	Dec 31, 2008
2007	$143B	$10.4B	13.7×	-1.0×	Dec 31, 2007
2006	$139B	$9.49B	14.7×	-0.8×	Dec 31, 2006
2005	$123B	$7.93B	15.5×	-4.5×	Dec 31, 2005
2004	$153B	$7.69B	20.0×	+0.2×	Dec 31, 2004
2003	$150B	$7.58B	19.8×	-15.4×	Dec 31, 2003
2002	$126B	$3.58B	35.2×	—	Dec 31, 2002


Ondas Holdings (ONDS)	16.4×
Dell Technologies (DELL)	16.2×
Western Digital (WDC)	15.7×
Accenture (ACN)	15.4×
Gartner (IT)	14.9×
CDW (CDW)	14.5×
Adobe (ADBE)	14.4×
Leidos Holdings (LDOS)	14.1×
Zoom Communications (ZM)	13.8×
QUALCOMM (QCOM)	13.7×
PTC (PTC)	13.5×
Paycom Software (PAYC)	13.2×
Elastic N.V. (ESTC)	13.2×
Cognizant (CTSH)	13.1×
First Solar (FSLR)	12.7×
GoDaddy (GDDY)	12.7×
Gen Digital (GEN)	11.7×
Duolingo (DUOL)	10.9×
Super Micro Computer (SMCI)	10.9×
Science Applications International (SAIC)	10.3×
Fiserv (FISV)	9.3×
Fidelity National Information Services (FIS)	9.0×
HP (HPQ)	7.5×
Sunrun (RUN)	5.6×
Lyft (LYFT)	1.8×

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

P/E Ratio daily chart for IBM (IBM)

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

About P/E Ratio at IBM (IBM)

IBM P/E Ratio by Year

IBM P/E Ratio 2025: 26.2×

IBM P/E Ratio 2024: 33.8×

IBM P/E Ratio 2023: 19.9×

IBM P/E Ratio 2022: 77.8×

IBM P/E Ratio 2021: 20.9×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

IBM (IBM) Key Financials