International Business Machines Corp. (IBM) intrinsic value & 10-year financials
International Business Machines Corp. (IBM) has a Graham intrinsic value of $59.94 per share. At $232.14 on Oct 17, 2026, the stock trades 287% above that value. Over the last 10 fiscal years revenue shrank 1.9% a year to $67.5B, with an average return on invested capital of 12.1%.
- Graham intrinsic value
- $59.94
- Share price (Oct 17, 2026)
- $232.14
- Price vs Graham value
- 287% above
- Market cap
- $220.2B
- Revenue (FY2025)
- $67.5B
- Revenue growth (10-yr CAGR)
- -1.9%
- ROIC (10-yr avg)
- 12.1%
- Free cash flow (FY2025)
- $12.1B
IBM 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $67.5B | $10.6B | $11.17 | $12.1B | — | 14.3% |
| FY2024 | $62.8B | $6.0B | $6.43 | $12.4B | — | 9.0% |
| FY2023 | $61.9B | $7.5B | $8.14 | $12.7B | — | 11.5% |
| FY2022 | $60.5B | $1.6B | $1.80 | $9.1B | — | 2.5% |
| FY2021 | $57.4B | $5.7B | $6.35 | $10.7B | — | 8.7% |
| FY2020 | $73.6B | $5.6B | $6.23 | $15.6B | — | 7.8% |
| FY2019 | $77.1B | $9.4B | $10.56 | $12.5B | — | 15.4% |
| FY2018 | $79.6B | $8.7B | $9.52 | $11.9B | — | 17.7% |
| FY2017 | $79.1B | $5.8B | $6.14 | $13.5B | — | 11.3% |
| FY2016 | $79.9B | $11.9B | $12.38 | $13.4B | — | 23.1% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
IBM is facing top-line stagnation, with revenue contracting over the decade.
IBM returns on capital have been average, hovering around 12.1% ROIC over the decade.
IBM has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, IBM is modeled at -1.1% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $59.94 per share.