Price to Earnings (P/E)
since 2005
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International Business Machines Corp. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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Calculation
International Business Machines Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income attributable to IBM1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2026 | = | ÷ | = | ÷ | |||||||
| Feb 25, 2025 | = | ÷ | = | ÷ | |||||||
| Feb 26, 2024 | = | ÷ | = | ÷ | |||||||
| Feb 28, 2023 | = | ÷ | = | ÷ | |||||||
| Feb 22, 2022 | = | ÷ | = | ÷ | |||||||
| Feb 23, 2021 | = | ÷ | = | ÷ | |||||||
| Feb 25, 2020 | = | ÷ | = | ÷ | |||||||
| Feb 26, 2019 | = | ÷ | = | ÷ | |||||||
| Feb 27, 2018 | = | ÷ | = | ÷ | |||||||
| Feb 28, 2017 | = | ÷ | = | ÷ | |||||||
| Feb 23, 2016 | = | ÷ | = | ÷ | |||||||
| Feb 24, 2015 | = | ÷ | = | ÷ | |||||||
| Feb 25, 2014 | = | ÷ | = | ÷ | |||||||
| Feb 26, 2013 | = | ÷ | = | ÷ | |||||||
| Feb 28, 2012 | = | ÷ | = | ÷ | |||||||
| Feb 22, 2011 | = | ÷ | = | ÷ | |||||||
| Feb 23, 2010 | = | ÷ | = | ÷ | |||||||
| Feb 24, 2009 | = | ÷ | = | ÷ | |||||||
| Feb 26, 2008 | = | ÷ | = | ÷ | |||||||
| Feb 27, 2007 | = | ÷ | = | ÷ | |||||||
| Feb 28, 2006 | = | ÷ | = | ÷ |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of International Business Machines Corp. Annual Report.
The price-to-earnings (P/E) ratio for the observed period exhibits considerable fluctuation. Initially, the ratio demonstrated relative stability between 2006 and 2008, fluctuating between approximately 14.90 and 15.85. A significant decline occurred in 2009, dropping to 9.40, before recovering somewhat to around 12.24 to 14.47 over the subsequent three years.
- Initial Stability & 2009 Decline
- From 2006 to 2008, the P/E ratio remained within a narrow range, suggesting a consistent market valuation relative to earnings. The sharp decrease in 2009 likely reflects a combination of factors, including a decrease in share price and potentially increased earnings during a period of economic uncertainty. The market may have anticipated a recovery, leading to higher earnings expectations.
Following 2012, the P/E ratio experienced another period of volatility. It peaked at 25.07 in 2017, a substantial increase compared to prior years, before decreasing to 14.25 in 2018. The period between 2019 and 2021 showed moderate fluctuation, ranging from 13.35 to 19.30. However, 2022 witnessed a dramatic surge to 71.56, followed by a decrease to 22.50 in 2023 and 39.68 in 2024. The most recent value, in 2025, is 20.31.
- Post-2012 Volatility
- The P/E ratio’s behavior after 2012 suggests increased investor sentiment sensitivity. The peak in 2017 could be attributed to positive market expectations or a reassessment of the company’s growth potential. The subsequent fluctuations, particularly the extreme value in 2022, indicate a period of significant market uncertainty or a substantial change in earnings expectations relative to share price. The decrease in 2023 and 2024 may reflect a correction or a more realistic valuation.
Overall, the P/E ratio demonstrates a lack of consistent trend. While periods of relative stability are observed, they are interspersed with significant fluctuations. The most pronounced changes occur after 2012, indicating a potentially evolving market perception of the company’s value and future prospects. The recent values suggest a return to a more moderate, though still variable, valuation range.
Comparison to Competitors
International Business Machines Corp., P/E, long-term trends, comparison to competitors
| International Business Machines Corp. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2026 | ||||||||||||||||
| Feb 25, 2025 | ||||||||||||||||
| Feb 26, 2024 | ||||||||||||||||
| Feb 28, 2023 | ||||||||||||||||
| Feb 22, 2022 | ||||||||||||||||
| Feb 23, 2021 | ||||||||||||||||
| Feb 25, 2020 | ||||||||||||||||
| Feb 26, 2019 | ||||||||||||||||
| Feb 27, 2018 | ||||||||||||||||
| Feb 28, 2017 | ||||||||||||||||
| Feb 23, 2016 | ||||||||||||||||
| Feb 24, 2015 | ||||||||||||||||
| Feb 25, 2014 | ||||||||||||||||
| Feb 26, 2013 | ||||||||||||||||
| Feb 28, 2012 | ||||||||||||||||
| Feb 22, 2011 | ||||||||||||||||
| Feb 23, 2010 | ||||||||||||||||
| Feb 24, 2009 | ||||||||||||||||
| Feb 26, 2008 | ||||||||||||||||
| Feb 27, 2007 | ||||||||||||||||
| Feb 28, 2006 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Software & Services)
International Business Machines Corp., P/E, long-term trends, comparison to sector (software & services)
| International Business Machines Corp. | Software & Services | |
|---|---|---|
| Feb 24, 2026 | ||
| Feb 25, 2025 | ||
| Feb 26, 2024 | ||
| Feb 28, 2023 | ||
| Feb 22, 2022 | ||
| Feb 23, 2021 | ||
| Feb 25, 2020 | ||
| Feb 26, 2019 | ||
| Feb 27, 2018 | ||
| Feb 28, 2017 | ||
| Feb 23, 2016 | ||
| Feb 24, 2015 | ||
| Feb 25, 2014 | ||
| Feb 26, 2013 | ||
| Feb 28, 2012 | ||
| Feb 22, 2011 | ||
| Feb 23, 2010 | ||
| Feb 24, 2009 | ||
| Feb 26, 2008 | ||
| Feb 27, 2007 | ||
| Feb 28, 2006 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
International Business Machines Corp., P/E, long-term trends, comparison to industry (information technology)
| International Business Machines Corp. | Information Technology | |
|---|---|---|
| Feb 24, 2026 | ||
| Feb 25, 2025 | ||
| Feb 26, 2024 | ||
| Feb 28, 2023 | ||
| Feb 22, 2022 | ||
| Feb 23, 2021 | ||
| Feb 25, 2020 | ||
| Feb 26, 2019 | ||
| Feb 27, 2018 | ||
| Feb 28, 2017 | ||
| Feb 23, 2016 | ||
| Feb 24, 2015 | ||
| Feb 25, 2014 | ||
| Feb 26, 2013 | ||
| Feb 28, 2012 | ||
| Feb 22, 2011 | ||
| Feb 23, 2010 | ||
| Feb 24, 2009 | ||
| Feb 26, 2008 | ||
| Feb 27, 2007 | ||
| Feb 28, 2006 |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).