IBM (IBM): Revisiting Valuation After a Strong 3-Month and Year-to-Date Share Price Rally

Simply Wall St.12-13

International Business Machines (IBM) has climbed roughly 22% over the past 3 months and more than 40% year to date, a move that has investors rethinking how this old-guard tech name is being valued. ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2591565851?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/company-cover/112350-main-header/1756253714243","is_english":true,"pubTime":"2025-12-13 23:36","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2591565851","market":"us","top_or_hot":-1,"title":"IBM (IBM): Revisiting Valuation After a Strong 3-Month and Year-to-Date Share Price Rally","media":"Simply Wall St.","content":"<div>\n<p>International Business Machines (IBM) has climbed roughly 22% over the past 3 months and more than 40% year to date, a move that has investors rethinking how this old-guard tech name is being valued. ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nyse-ibm/international-business-machines/news/ibm-ibm-revisiting-valuation-after-a-strong-3-month-and-year\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>IBM (IBM): Revisiting Valuation After a Strong 3-Month and Year-to-Date Share Price Rally</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIBM (IBM): Revisiting Valuation After a Strong 3-Month and Year-to-Date Share Price Rally\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-13 23:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nyse-ibm/international-business-machines/news/ibm-ibm-revisiting-valuation-after-a-strong-3-month-and-year><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>International Business Machines (IBM) has climbed roughly 22% over the past 3 months and more than 40% year to date, a move that has investors rethinking how this old-guard tech name is being valued. ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nyse-ibm/international-business-machines/news/ibm-ibm-revisiting-valuation-after-a-strong-3-month-and-year\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1894683264.USD","symbol_name":"AMUNDI FUNDS US EQUITY RESEARCH VALUE \"A2\" (USD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nyse-ibm/international-business-machines/news/ibm-ibm-revisiting-valuation-after-a-strong-3-month-and-year","article_id":"2591565851","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/112350-main-header/1756253714243"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nyse-ibm/international-business-machines/news/ibm-ibm-revisiting-valuation-after-a-strong-3-month-and-year","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2591565851","pubTimestamp":1765640199,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"International Business Machines (IBM) has climbed roughly 22% over the past 3 months and more than 40% year to date, a move that has investors rethinking how this old-guard tech name is being valued.\nSee our latest analysis for International Business Machines.\nThat surge has not come out of nowhere, with investors rewarding steady cloud and AI execution as recent earnings and guidance resets have shifted the narrative toward profitable growth. Even after short term share price wobbles, IBM’s...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1894683264.USD":"AMUNDI FUNDS US EQUITY RESEARCH VALUE \"A2\" (USD) ACC","BK4612":"AI芯片","BK4587":"ChatGPT概念","LU1430594728.SGD":"Eastspring Investments - Global Low Volatility Equity AS SGD","BK4538":"云计算","LU1585245621.USD":"EASTSPRING INV GLOBAL LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC B","LU1894683348.USD":"AMUNDI FUNDS US EQUITY RESEARCH VALUE \"A2\" (USD) INC","BK4579":"人工智能","BK4588":"碎股","AI":"C3.ai, Inc.","LU1674673691.USD":"HSBC GIF GLOBAL LOWER CARBON EQUITY \"AD\" (USD) INC","BK4134":"信息科技咨询与其它服务","LU1674673428.USD":"HSBC GIF GLOBAL LOWER CARBON EQUITY \"AC\" (USD) ACC","BK4551":"寇图资本持仓","LU1883839398.USD":"AMUNDI FUNDS INCOME OPPORTUNITIES \"A2\" (USD) ACC","IBM":"IBM","BK4023":"应用软件","BK4543":"AI","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","LU1880398471.USD":"AMUNDI FUNDS GLOBAL EQUITY \"A2\" (USD) ACC","LU0321505868.SGD":"Schroder ISF Global Dividend Maximiser A Dis SGD","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1880398554.USD":"AMUNDI FUNDS GLOBAL EQUITY \"A2\" (USD) INC","LU0321505439.SGD":"Schroder ISF Global Dividend Maximiser A Acc SGD","BK4602":"量子计算概念","BK4575":"芯片概念","LU1778281490.HKD":"HSBC GIF GLOBAL LOWER CARBON EQUITY \"AD\" (HKD) INC","BK4528":"SaaS概念"},"translate_title":"IBM(IBM)：在经历了3个月和今年迄今的强劲股价上涨后重新审视估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IBM":1.5,"AI":0.81},"content_text":"International Business Machines (IBM) has climbed roughly 22% over the past 3 months and more than 40% year to date, a move that has investors rethinking how this old-guard tech name is being valued. See our latest analysis for International Business Machines. That surge has not come out of nowhere, with investors rewarding steady cloud and AI execution as recent earnings and guidance resets have shifted the narrative toward profitable growth. Even after short term share price wobbles, IBM’s strong multi year total shareholder returns suggest momentum is still building rather than fading. While IBM’s run has been impressive, it is worth seeing how other large tech names are shaping up by exploring high growth tech and AI stocks as potential additions to your watchlist. With IBM now trading above analyst targets and showing double digit earnings growth, the key question is whether investors are overpaying for this AI and cloud pivot or if the market still underestimates its next leg of growth? Most Popular Narrative Narrative: 6.3% Overvalued With International Business Machines closing around $309.24 versus a narrative fair value near $290.89, the story leans toward a premium built on future execution.  The analysts have a consensus price target of $281.316 for International Business Machines based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $350.0, and the most bearish reporting a price target of just $198.0.  Read the complete narrative. Want to see why modest revenue growth, fatter margins and a rich future earnings multiple still add up to a premium valuation? The key assumptions may surprise you. Result: Fair Value of $290.89 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, softer software growth or delayed quantum commercialization could quickly challenge these optimistic assumptions and force investors to reassess IBM’s premium valuation. Find out about the key risks to this International Business Machines narrative. Another View: Valuation Through Earnings While the narrative fair value points to IBM being about 6% overvalued, its current price to earnings ratio of 36.5x looks stretched versus the US IT industry at 29.9x and peers at 22x, yet still below a fair ratio of 39.3x. This raises the question of whether this represents a justified quality premium or a late cycle risk for new buyers. See what the numbers say about this price — find out in our valuation breakdown. NYSE:IBM PE Ratio as at Dec 2025 Build Your Own International Business Machines Narrative If you see the story differently or want to dive into the numbers yourself, you can build a custom view in just minutes, Do it your way. A great starting point for your International Business Machines research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? Before you move on, explore powerful screeners on Simply Wall St to help you identify opportunities that others might overlook.  Scan these 3606 penny stocks with strong financials to find potential multi baggers that already have solid financials and room to grow. Focus on these 26 AI penny stocks to identify companies involved in AI that combine innovative technology with compelling growth profiles. Review these 907 undervalued stocks based on cash flows to discover stocks that appear undervalued based on estimates of future cash flows.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTechNew: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2591565851","isCrawlerRequest":true}