Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Historical Valuation Ratios (Summary)
International Business Machines Corp., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
An analysis of the valuation ratios reveals a period of significant volatility and subsequent expansion followed by a correction toward historical norms. The most prominent trend is a sharp divergence in earnings-based multiples during 2022 and 2023, contrasted with a broad valuation expansion across all metrics throughout 2024 and the first half of 2025.
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibited extreme volatility between September 2022 and June 2023, peaking at 95.23. This spike indicates a substantial temporary contraction in net income relative to the stock price. Following a return to baseline levels in September 2023 (19.07), a second growth phase occurred, with the ratio climbing to a peak of 41.60 by June 2025. By 2026, the ratio stabilized within a range of 18.15 to 21.33, aligning closely with the levels observed in early 2022.
- Price to Operating Profit (P/OP) Ratio
- Unlike the P/E ratio, the P/OP ratio remained relatively stable during the 2022-2023 period, fluctuating between 13.98 and 15.37. This suggests that the volatility seen in net earnings was driven by non-operating items rather than core operational performance. A gradual upward trend began in early 2024, reaching a peak of 25.48 in December 2024, before receding to approximately 19.73 by September 2026.
- Price to Sales (P/S) Ratio
- The P/S ratio remained consistent near 2.0 from March 2022 through September 2023. Starting in December 2023, a sustained upward trajectory was observed, with the ratio doubling to a peak of 4.07 by September 2025. This indicates that the market assigned a higher premium to each dollar of revenue generated during this window. A subsequent decline occurred in late 2025, with the ratio settling between 2.82 and 3.41 in 2026.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio followed a pattern similar to the P/S ratio, maintaining a range of 5.29 to 6.43 until late 2023. A significant expansion followed, peaking at 9.55 in September 2025. This suggests a period where the stock price grew significantly faster than the company's equity base. A sharp correction occurred in December 2025, bringing the ratio back down to 6.59, with further volatility observed through September 2026.
Overall, the valuation profile suggests a cycle of stability, operational resilience during a net-income shock, and a speculative or growth-driven expansion of multiples that peaked in mid-2025. The convergence of ratios in 2026 indicates a return to a more conservative valuation framework.
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Price to Earnings (P/E)
International Business Machines Corp., historical P/E calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 945,120,805 | 942,134,390 | 939,885,280 | 938,034,404 | 934,735,206 | 931,519,242 | 929,396,575 | 927,264,332 | 924,645,152 | 921,148,195 | 918,602,666 | 916,744,848 | 913,118,581 | 911,006,240 | 908,045,414 | 907,105,611 | 904,126,363 | 903,180,353 | 899,435,325 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Net income (loss) (in millions) | 2,190) | 2,165) | 1,216) | 5,600) | 1,744) | 2,194) | 1,055) | 2,914) | (330) | 1,834) | 1,605) | 3,288) | 1,704) | 1,583) | 927) | 2,710) | (3,196) | 1,392) | 733) | ||||||
| Earnings per share (EPS)2 | 11.82 | 11.38 | 11.44 | 11.29 | 8.46 | 6.26 | 5.89 | 6.50 | 6.92 | 9.15 | 8.90 | 8.18 | 7.58 | 2.22 | 2.02 | 1.81 | 1.40 | 6.19 | 6.14 | ||||||
| Share price1, 3 | 252.11 | 206.65 | 231.08 | 229.32 | 285.00 | 260.51 | 229.33 | 257.75 | 204.90 | 191.04 | 166.20 | 184.13 | 144.64 | 140.33 | 125.89 | 129.30 | 132.93 | 128.54 | 136.19 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/E ratio4 | 21.33 | 18.15 | 20.20 | 20.31 | 33.69 | 41.60 | 38.94 | 39.68 | 29.62 | 20.87 | 18.66 | 22.50 | 19.07 | 63.16 | 62.36 | 71.56 | 95.23 | 20.78 | 22.19 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||||
| Accenture PLC | 10.06 | 16.35 | 21.84 | 19.47 | 22.37 | 24.53 | 30.76 | 31.07 | 27.59 | 30.87 | 31.14 | 27.81 | 27.07 | 24.73 | 23.64 | 22.93 | 27.30 | 31.69 | 40.88 | ||||||
| Adobe Inc. | 12.73 | 11.35 | 13.30 | 17.51 | 21.26 | 23.93 | 25.11 | 31.98 | 42.53 | 46.15 | 47.07 | 49.64 | 44.69 | 45.30 | 36.72 | 33.15 | 27.18 | 35.27 | 45.03 | ||||||
| AppLovin Corp. | — | 31.70 | 39.74 | 41.68 | 73.67 | 54.38 | 53.48 | 68.97 | 49.07 | 27.16 | 40.75 | 56.56 | 128.35 | 508.94 | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | 68.06 | 66.50 | 80.31 | 72.92 | 87.60 | 99.91 | 75.17 | 67.09 | 76.54 | 69.10 | 72.17 | 78.64 | 68.16 | 73.71 | 67.89 | 59.70 | 55.98 | 59.24 | 56.00 | ||||||
| Datadog Inc. | — | 463.62 | 495.16 | 398.52 | 628.11 | 366.47 | 220.89 | 235.49 | 220.03 | 232.13 | 340.29 | 884.97 | — | — | — | — | — | 5,463.33 | 16,813.15 | ||||||
| Intuit Inc. | 22.91 | 25.13 | 43.09 | 48.19 | 53.58 | 51.15 | 65.11 | 58.94 | 60.26 | 66.50 | 61.19 | 64.61 | 56.26 | 59.38 | 56.80 | 57.31 | 40.47 | 63.28 | 85.13 | ||||||
| Microsoft Corp. | 25.18 | 29.99 | 38.37 | 37.46 | 30.40 | 35.45 | 35.53 | 35.67 | 34.41 | 36.78 | 31.86 | 33.96 | 29.67 | 26.71 | 26.77 | 28.34 | 27.89 | 30.38 | 34.30 | ||||||
| Oracle Corp. | 28.98 | 37.04 | 75.00 | 47.60 | 33.25 | 42.77 | 39.36 | 37.63 | 32.94 | 27.34 | 32.03 | 38.96 | 27.11 | 24.69 | 35.29 | 26.85 | 27.46 | 26.70 | 17.45 | ||||||
| Palantir Technologies Inc. | — | 129.57 | 142.81 | 195.77 | 415.04 | 538.53 | 450.16 | 632.38 | 244.40 | 147.19 | 159.62 | 246.77 | 279.03 | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 271.18 | 96.98 | 115.46 | 112.39 | 97.64 | 105.57 | 47.73 | 42.42 | 41.23 | 37.18 | 127.17 | 170.35 | 290.26 | 1,656.49 | — | — | — | — | — | ||||||
| Salesforce Inc. | 32.11 | 34.86 | 41.12 | 45.28 | 59.32 | 43.63 | 38.62 | 71.24 | 94.07 | 136.55 | 547.14 | 879.57 | 528.78 | 324.46 | 174.67 | 135.68 | 147.95 | 110.94 | 48.91 | ||||||
| ServiceNow Inc. | 107.84 | 56.93 | 49.75 | 69.85 | 112.32 | 124.75 | 109.38 | 146.40 | 147.50 | 148.98 | 77.25 | 90.80 | 71.21 | 80.21 | 231.72 | 284.29 | 417.72 | 479.20 | 452.02 | ||||||
| Synopsys Inc. | 72.98 | 130.23 | 78.12 | 69.11 | 56.20 | 33.17 | 34.48 | 33.69 | 55.30 | 63.08 | 62.39 | 70.08 | 62.65 | 67.52 | 57.28 | 51.76 | 53.76 | 46.52 | 48.45 | ||||||
| Workday Inc. | 88.22 | 101.34 | 130.49 | 122.85 | 43.12 | 44.76 | 37.68 | 50.53 | 934.29 | — | — | — | — | — | — | 1,957.29 | 2,418.34 | — | — | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2026 Calculation
EPS
= (Net income (loss)Q3 2026
+ Net income (loss)Q2 2026
+ Net income (loss)Q1 2026
+ Net income (loss)Q4 2025)
÷ No. shares of common stock outstanding
= (2,190,000,000 + 2,165,000,000 + 1,216,000,000 + 5,600,000,000)
÷ 945,120,805 = 11.82
3 Closing price as at the filing date of International Business Machines Corp. Quarterly or Annual Report.
4 Q3 2026 Calculation
P/E ratio = Share price ÷ EPS
= 252.11 ÷ 11.82 = 21.33
5 Click competitor name to see calculations.
The valuation trajectory from March 2022 to September 2026 is characterized by periods of extreme volatility followed by a stabilization of the price-to-earnings (P/E) ratio. While the share price exhibited a general upward trend over the period, the P/E ratio was heavily influenced by significant fluctuations in quarterly earnings per share (EPS).
- Earnings Volatility and Valuation Spikes
- Between September 2022 and June 2023, the P/E ratio experienced a sharp escalation, peaking at 95.23. This surge was not driven by a proportional increase in share price, which remained relatively stable, but by a substantial decline in EPS, which dropped to 1.40 in September 2022. This period represents a valuation anomaly where the earnings base contracted while market pricing remained resilient.
- Normalization and Recovery
- A return to historical valuation norms occurred in September 2023, with the P/E ratio falling to 19.07. This normalization coincided with a strong recovery in EPS, which rose to 7.58 in the same quarter. The ratio remained stable between 18.66 and 22.50 through March 2024, indicating a period where share price growth and earnings growth were closely aligned.
- Secondary Valuation Expansion
- A second upward trend in the P/E ratio is observed between June 2024 and June 2025, where the ratio climbed from 20.87 to 41.60. This expansion was driven by rapid share price appreciation, reaching 260.51 by June 2025, which significantly outpaced the growth in EPS during those specific quarters.
- Long-term Stability and Convergence
- From September 2025 through September 2026, the P/E ratio converged toward a stable range of 18.15 to 21.33. This stabilization occurred alongside a marked increase in the earnings base, with EPS maintaining levels above 11.00. This suggests a maturation of the valuation where the higher share prices became fundamentally supported by significantly improved earnings performance.
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Price to Operating Profit (P/OP)
International Business Machines Corp., historical P/OP calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 945,120,805 | 942,134,390 | 939,885,280 | 938,034,404 | 934,735,206 | 931,519,242 | 929,396,575 | 927,264,332 | 924,645,152 | 921,148,195 | 918,602,666 | 916,744,848 | 913,118,581 | 911,006,240 | 908,045,414 | 907,105,611 | 904,126,363 | 903,180,353 | 899,435,325 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Operating income (in millions) | 2,880) | 2,781) | 1,860) | 4,557) | 2,749) | 3,068) | 1,448) | 3,908) | 1,871) | 2,413) | 1,188) | 3,969) | 2,070) | 2,162) | 1,181) | 3,507) | 1,549) | 1,938) | 1,180) | ||||||
| Operating profit per share2 | 12.78 | 12.68 | 13.02 | 12.60 | 11.95 | 11.05 | 10.37 | 10.12 | 10.21 | 10.47 | 10.22 | 10.23 | 9.77 | 9.22 | 9.00 | 9.01 | 8.65 | 8.44 | 7.98 | ||||||
| Share price1, 3 | 252.11 | 206.65 | 231.08 | 229.32 | 285.00 | 260.51 | 229.33 | 257.75 | 204.90 | 191.04 | 166.20 | 184.13 | 144.64 | 140.33 | 125.89 | 129.30 | 132.93 | 128.54 | 136.19 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/OP ratio4 | 19.73 | 16.30 | 17.75 | 18.20 | 23.84 | 23.57 | 22.11 | 25.48 | 20.07 | 18.25 | 16.26 | 17.99 | 14.81 | 15.22 | 13.98 | 14.35 | 15.37 | 15.24 | 17.07 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||||
| Accenture PLC | 7.40 | 12.02 | 16.37 | 14.62 | 16.89 | 18.52 | 23.34 | 23.52 | 20.96 | 24.43 | 24.40 | 21.69 | 21.16 | 18.24 | 17.50 | 16.83 | 19.98 | 23.62 | 31.03 | ||||||
| Adobe Inc. | 10.00 | 9.02 | 10.70 | 14.34 | 17.60 | 20.00 | 21.20 | 26.38 | 34.93 | 37.61 | 37.84 | 40.52 | 35.69 | 35.47 | 28.49 | 25.85 | 21.47 | 28.50 | 36.67 | ||||||
| AppLovin Corp. | — | 26.44 | 33.14 | 33.47 | 59.84 | 44.93 | 43.26 | 58.16 | 36.85 | 18.93 | 26.27 | 31.12 | 37.82 | 46.66 | 45.96 | — | 182.48 | 465.09 | 1,412.13 | ||||||
| Cadence Design Systems Inc. | 52.98 | 51.76 | 60.21 | 54.20 | 62.56 | 71.69 | 55.59 | 52.42 | 64.64 | 62.16 | 64.10 | 65.43 | 57.98 | 59.96 | 53.91 | 47.21 | 41.53 | 46.31 | 46.60 | ||||||
| Datadog Inc. | — | 5,042.09 | — | — | — | — | 1,225.87 | 797.11 | 582.08 | 786.59 | 2,905.50 | — | — | — | — | — | — | 3,299.68 | 8,476.50 | ||||||
| Intuit Inc. | 18.27 | 20.02 | 34.22 | 37.87 | 41.91 | 40.68 | 52.88 | 48.11 | 48.74 | 53.07 | 46.91 | 49.04 | 41.32 | 43.34 | 43.50 | 46.05 | 33.22 | 53.54 | 71.64 | ||||||
| Microsoft Corp. | 21.17 | 25.09 | 29.61 | 29.68 | 24.05 | 27.94 | 28.44 | 28.73 | 28.04 | 30.20 | 26.16 | 27.76 | 24.15 | 21.76 | 22.07 | 24.72 | 24.66 | 27.51 | 31.35 | ||||||
| Oracle Corp. | 23.96 | 30.92 | 51.94 | 33.50 | 23.43 | 29.86 | 26.92 | 25.65 | 23.67 | 19.36 | 21.82 | 25.30 | 16.87 | 15.50 | 20.25 | 16.51 | 18.93 | 24.87 | 15.78 | ||||||
| Palantir Technologies Inc. | — | 148.36 | 163.57 | 224.99 | 535.05 | 721.72 | 633.43 | 941.61 | 318.98 | 203.93 | 242.24 | 431.61 | 1,130.92 | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 224.03 | 87.42 | 101.94 | 102.53 | 122.82 | 140.59 | 172.78 | 159.88 | 144.37 | 140.84 | 132.93 | 193.40 | 418.85 | 2,481.12 | — | — | — | — | — | ||||||
| Salesforce Inc. | 28.00 | 29.08 | 34.31 | 38.94 | 50.24 | 37.14 | 33.49 | 58.80 | 65.09 | 79.66 | 145.83 | 177.62 | 295.77 | 2,318.80 | 818.64 | 357.52 | 280.57 | 236.57 | 228.93 | ||||||
| ServiceNow Inc. | 104.38 | 56.59 | 46.59 | 66.94 | 110.78 | 129.43 | 113.44 | 152.95 | 156.40 | 159.12 | 156.78 | 206.26 | 174.57 | 225.29 | 224.97 | 260.27 | 357.28 | 404.46 | 408.10 | ||||||
| Synopsys Inc. | 97.93 | 165.05 | 99.34 | 100.63 | 101.65 | 55.22 | 57.97 | 56.25 | 56.16 | 63.80 | 64.29 | 67.90 | 61.35 | 62.50 | 50.41 | 43.85 | 48.91 | 42.54 | 47.17 | ||||||
| Workday Inc. | 91.20 | 112.10 | 162.95 | 155.71 | 166.90 | 201.96 | 210.15 | 381.31 | 4,065.25 | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2026 Calculation
Operating profit per share
= (Operating incomeQ3 2026
+ Operating incomeQ2 2026
+ Operating incomeQ1 2026
+ Operating incomeQ4 2025)
÷ No. shares of common stock outstanding
= (2,880,000,000 + 2,781,000,000 + 1,860,000,000 + 4,557,000,000)
÷ 945,120,805 = 12.78
3 Closing price as at the filing date of International Business Machines Corp. Quarterly or Annual Report.
4 Q3 2026 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 252.11 ÷ 12.78 = 19.73
5 Click competitor name to see calculations.
The valuation profile between March 2022 and September 2026 is characterized by a steady growth in operational efficiency contrasted with significant volatility in market pricing. While operating profit per share maintained a consistent upward trajectory, the market valuation experienced a period of rapid expansion followed by a correction, resulting in fluctuating Price to Operating Profit (P/OP) multiples.
- Share Price Trends
- Share prices exhibited relative stability between $125 and $145 from March 2022 through September 2023. A strong bullish phase emerged in late 2023, driving the price from $144.64 in September 2023 to a peak of $285.00 in September 2025. The final period shows a volatile correction and stabilization, with the price ending at $252.11 in September 2026.
- Operating Profit per Share (OPPS) Performance
- A continuous and linear increase in operating profit per share is observed throughout the entire period. The metric rose from $7.98 in March 2022 to $12.78 by September 2026. This steady growth indicates a consistent improvement in fundamental operational profitability, regardless of the fluctuations observed in the equity price.
- P/OP Ratio Interpretation
- The P/OP ratio remained within a tight range of 13.98 to 17.07 during 2022 and the first half of 2023. A sharp valuation expansion began in late 2023, culminating in a peak ratio of 25.48 in December 2024, signifying a period where market optimism and share price growth significantly outpaced the growth of operating profits. Subsequently, the ratio underwent a contraction, returning to a range between 16.30 and 19.73 by September 2026, which suggests a realignment of the share price with the company's operational earnings power.
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Price to Sales (P/S)
International Business Machines Corp., historical P/S calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 945,120,805 | 942,134,390 | 939,885,280 | 938,034,404 | 934,735,206 | 931,519,242 | 929,396,575 | 927,264,332 | 924,645,152 | 921,148,195 | 918,602,666 | 916,744,848 | 913,118,581 | 911,006,240 | 908,045,414 | 907,105,611 | 904,126,363 | 903,180,353 | 899,435,325 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Revenue (in millions) | 17,103) | 17,162) | 15,917) | 19,686) | 16,331) | 16,977) | 14,541) | 17,553) | 14,968) | 15,770) | 14,462) | 17,381) | 14,752) | 15,475) | 14,252) | 16,691) | 14,107) | 15,535) | 14,197) | ||||||
| Sales per share2 | 73.92 | 73.34 | 73.32 | 72.00 | 69.97 | 68.75 | 67.61 | 67.68 | 67.68 | 67.70 | 67.57 | 67.48 | 66.99 | 66.44 | 66.72 | 66.73 | 66.95 | 66.07 | 64.89 | ||||||
| Share price1, 3 | 252.11 | 206.65 | 231.08 | 229.32 | 285.00 | 260.51 | 229.33 | 257.75 | 204.90 | 191.04 | 166.20 | 184.13 | 144.64 | 140.33 | 125.89 | 129.30 | 132.93 | 128.54 | 136.19 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/S ratio4 | 3.41 | 2.82 | 3.15 | 3.19 | 4.07 | 3.79 | 3.39 | 3.81 | 3.03 | 2.82 | 2.46 | 2.73 | 2.16 | 2.11 | 1.89 | 1.94 | 1.99 | 1.95 | 2.10 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||||
| Accenture PLC | 1.07 | 1.73 | 2.35 | 2.15 | 2.60 | 2.80 | 3.51 | 3.48 | 2.98 | 3.36 | 3.32 | 2.98 | 3.05 | 2.72 | 2.67 | 2.56 | 3.04 | 3.57 | 4.72 | ||||||
| Adobe Inc. | 3.57 | 3.26 | 3.92 | 5.25 | 6.38 | 7.27 | 7.69 | 8.27 | 10.88 | 11.47 | 11.33 | 13.88 | 12.12 | 11.93 | 9.66 | 8.95 | 7.61 | 10.33 | 13.47 | ||||||
| AppLovin Corp. | — | 20.47 | 25.55 | 25.35 | 40.14 | 26.48 | 21.35 | 23.14 | 13.19 | 5.68 | 6.71 | 6.14 | 4.44 | 3.55 | 2.23 | 1.80 | 2.08 | 4.61 | 5.30 | ||||||
| Cadence Design Systems Inc. | 15.32 | 15.70 | 17.01 | 15.27 | 17.83 | 19.87 | 16.68 | 15.26 | 18.27 | 17.52 | 18.53 | 20.02 | 16.65 | 17.25 | 15.77 | 14.23 | 12.80 | 13.99 | 13.21 | ||||||
| Datadog Inc. | — | 20.76 | 18.30 | 12.53 | 20.88 | 15.14 | 12.92 | 16.12 | 16.67 | 15.81 | 17.37 | 20.19 | 16.72 | 14.86 | 13.74 | 14.64 | 14.59 | 26.18 | 29.04 | ||||||
| Intuit Inc. | 5.02 | 5.42 | 9.13 | 9.90 | 10.22 | 9.05 | 11.46 | 10.72 | 11.71 | 12.20 | 10.73 | 10.72 | 8.95 | 8.44 | 8.01 | 9.30 | 7.87 | 12.04 | 17.26 | ||||||
| Microsoft Corp. | 9.91 | 11.71 | 13.70 | 13.54 | 10.88 | 12.56 | 12.65 | 12.82 | 12.54 | 13.34 | 11.25 | 11.60 | 9.86 | 8.83 | 9.20 | 10.40 | 10.50 | 11.70 | 13.21 | ||||||
| Oracle Corp. | 7.32 | 9.36 | 15.81 | 10.32 | 7.25 | 9.05 | 8.03 | 7.44 | 6.68 | 5.37 | 5.89 | 6.63 | 4.73 | 4.71 | 4.64 | 4.25 | 4.96 | 6.62 | 5.96 | ||||||
| Palantir Technologies Inc. | — | 63.50 | 62.37 | 71.09 | 116.68 | 119.47 | 82.47 | 102.00 | 44.01 | 24.02 | 20.42 | 23.27 | 19.34 | 17.93 | 10.19 | 9.34 | 7.98 | 11.62 | 9.27 | ||||||
| Palo Alto Networks Inc. | 21.55 | 12.57 | 13.50 | 13.82 | 13.62 | 15.45 | 15.74 | 13.62 | 12.95 | 11.25 | 10.83 | 10.87 | 9.63 | 9.23 | 8.70 | 9.62 | 9.22 | 9.68 | 11.48 | ||||||
| Salesforce Inc. | 5.75 | 5.88 | 6.61 | 7.40 | 9.47 | 6.74 | 5.91 | 8.45 | 7.18 | 6.52 | 6.44 | 5.84 | 4.85 | 5.93 | 6.27 | 7.40 | 10.30 | 11.09 | 9.72 | ||||||
| ServiceNow Inc. | 10.10 | 6.45 | 6.26 | 9.20 | 15.35 | 17.19 | 14.67 | 18.99 | 18.83 | 17.15 | 15.71 | 17.52 | 13.33 | 14.25 | 12.17 | 12.75 | 12.13 | 13.36 | 16.11 | ||||||
| Synopsys Inc. | 8.34 | 11.60 | 10.75 | 13.05 | 17.44 | 11.53 | 11.98 | 12.45 | 13.60 | 14.87 | 14.65 | 14.75 | 11.72 | 11.75 | 10.44 | 10.03 | 11.21 | 9.86 | 9.78 | ||||||
| Workday Inc. | 6.14 | 6.59 | 7.31 | 7.65 | 8.57 | 8.77 | 7.41 | 9.61 | 8.94 | 8.77 | 7.93 | 7.71 | 6.19 | 7.33 | 7.91 | 11.19 | 15.28 | 13.10 | 13.09 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2026 Calculation
Sales per share
= (RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025)
÷ No. shares of common stock outstanding
= (17,103,000,000 + 17,162,000,000 + 15,917,000,000 + 19,686,000,000)
÷ 945,120,805 = 73.92
3 Closing price as at the filing date of International Business Machines Corp. Quarterly or Annual Report.
4 Q3 2026 Calculation
P/S ratio = Share price ÷ Sales per share
= 252.11 ÷ 73.92 = 3.41
5 Click competitor name to see calculations.
The Price to Sales (P/S) ratio exhibits a significant expansion in market valuation relative to revenue generation over the analyzed period, characterized by an initial phase of stability, a period of aggressive growth, and a subsequent phase of volatility.
- P/S Ratio Trajectory
- From March 2022 through September 2023, the P/S ratio remained relatively stable, fluctuating within a narrow band between 1.89 and 2.16. A decisive upward trend emerged in December 2023, with the ratio climbing to a peak of 4.07 by September 2025. Following this peak, the ratio experienced a correction, descending to 2.82 by June 2026, before rebounding to 3.41 in September 2026.
- Share Price Dynamics
- The expansion of the P/S ratio was primarily driven by substantial appreciation in the share price. After an initial dip to 125.89 in March 2023, the share price entered a strong bullish phase, reaching a maximum of 285.00 in September 2025. The volatility observed in the valuation ratios during 2026 corresponds directly with share price fluctuations, which saw a decline to 229.32 in December 2025 and a subsequent recovery to 252.11 by September 2026.
- Sales per Share Growth
- Sales per share demonstrated a consistent and linear growth pattern, rising from 64.89 in March 2022 to 73.92 by September 2026. This steady increase indicates a stable growth in fundamental revenue efficiency; however, the rate of revenue growth was significantly outpaced by the increase in share price between late 2023 and late 2025, leading to the observed inflation of the P/S multiple.
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Price to Book Value (P/BV)
International Business Machines Corp., historical P/BV calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 945,120,805 | 942,134,390 | 939,885,280 | 938,034,404 | 934,735,206 | 931,519,242 | 929,396,575 | 927,264,332 | 924,645,152 | 921,148,195 | 918,602,666 | 916,744,848 | 913,118,581 | 911,006,240 | 908,045,414 | 907,105,611 | 904,126,363 | 903,180,353 | 899,435,325 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Total IBM stockholders’ equity (in millions) | 35,537) | 34,452) | 32,974) | 32,648) | 27,905) | 27,509) | 26,880) | 27,307) | 24,448) | 24,026) | 23,261) | 22,533) | 23,081) | 22,201) | 21,604) | 21,944) | 20,076) | 19,409) | 19,050) | ||||||
| Book value per share (BVPS)2 | 37.60 | 36.57 | 35.08 | 34.80 | 29.85 | 29.53 | 28.92 | 29.45 | 26.44 | 26.08 | 25.32 | 24.58 | 25.28 | 24.37 | 23.79 | 24.19 | 22.20 | 21.49 | 21.18 | ||||||
| Share price1, 3 | 252.11 | 206.65 | 231.08 | 229.32 | 285.00 | 260.51 | 229.33 | 257.75 | 204.90 | 191.04 | 166.20 | 184.13 | 144.64 | 140.33 | 125.89 | 129.30 | 132.93 | 128.54 | 136.19 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/BV ratio4 | 6.70 | 5.65 | 6.59 | 6.59 | 9.55 | 8.82 | 7.93 | 8.75 | 7.75 | 7.32 | 6.56 | 7.49 | 5.72 | 5.76 | 5.29 | 5.34 | 5.99 | 5.98 | 6.43 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||||
| Accenture PLC | 2.46 | 4.01 | 5.38 | 4.79 | 5.82 | 6.44 | 7.98 | 7.98 | 6.92 | 8.00 | 8.03 | 7.44 | 7.65 | 7.22 | 7.26 | 7.13 | 8.46 | 9.85 | 12.45 | ||||||
| Adobe Inc. | 7.88 | 7.12 | 8.39 | 10.74 | 12.56 | 14.36 | 12.95 | 12.61 | 15.67 | 15.79 | 14.62 | 16.31 | 14.51 | 14.82 | 12.24 | 11.22 | 9.10 | 12.33 | 15.78 | ||||||
| AppLovin Corp. | — | 44.20 | 66.64 | 65.10 | 141.48 | 113.19 | 178.46 | 99.97 | 60.29 | 27.56 | 32.03 | 16.06 | 12.29 | 6.74 | 3.42 | 2.67 | 3.22 | 7.06 | 7.41 | ||||||
| Cadence Design Systems Inc. | 13.67 | 13.36 | 14.33 | 14.77 | 17.88 | 20.19 | 17.02 | 15.15 | 17.43 | 17.12 | 21.18 | 24.05 | 20.96 | 22.55 | 19.75 | 18.46 | 16.23 | 17.49 | 15.10 | ||||||
| Datadog Inc. | — | 18.85 | 16.84 | 11.50 | 19.50 | 14.29 | 12.55 | 15.94 | 16.08 | 15.73 | 17.81 | 21.22 | 18.59 | 17.10 | 16.30 | 17.39 | 17.33 | 29.42 | 31.03 | ||||||
| Intuit Inc. | 5.09 | 5.72 | 9.18 | 9.46 | 9.23 | 8.65 | 10.48 | 9.47 | 9.87 | 10.89 | 9.31 | 8.92 | 7.16 | 7.29 | 6.64 | 7.20 | 5.97 | 8.81 | 18.30 | ||||||
| Microsoft Corp. | 7.61 | 9.15 | 11.09 | 11.11 | 9.13 | 10.86 | 11.18 | 11.71 | 11.72 | 12.74 | 11.13 | 11.92 | 10.52 | 9.84 | 10.77 | 12.38 | 12.40 | 13.52 | 15.32 | ||||||
| Oracle Corp. | 12.19 | 19.08 | 38.63 | 28.96 | 24.17 | 36.17 | 39.94 | 45.25 | 62.34 | 71.68 | 126.71 | 308.71 | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | — | 39.99 | 38.56 | 43.07 | 68.98 | 69.33 | 47.36 | 58.42 | 25.89 | 14.70 | 12.62 | 14.90 | 12.89 | 12.41 | 7.43 | 6.94 | 6.12 | 8.63 | 6.46 | ||||||
| Palo Alto Networks Inc. | 8.26 | 13.24 | 14.89 | 16.29 | 16.72 | 20.77 | 22.07 | 21.15 | 22.59 | 19.43 | 35.97 | 42.84 | 50.71 | 77.94 | 99.68 | 252.00 | 141.27 | 399.29 | 100.84 | ||||||
| Salesforce Inc. | 3.86 | 3.79 | 4.21 | 4.59 | 6.02 | 4.26 | 3.54 | 4.94 | 4.20 | 3.71 | 3.61 | 3.13 | 2.48 | 2.89 | 2.98 | 3.37 | 4.51 | 4.70 | 5.10 | ||||||
| ServiceNow Inc. | 11.90 | 7.60 | 7.45 | 9.42 | 17.20 | 18.95 | 16.59 | 21.71 | 21.21 | 19.70 | 18.37 | 20.60 | 15.73 | 16.49 | 16.55 | 18.36 | 18.56 | 21.02 | 25.22 | ||||||
| Synopsys Inc. | 2.52 | 3.30 | 2.82 | 3.25 | 4.07 | 7.24 | 7.82 | 8.48 | 10.75 | 12.58 | 13.16 | 14.02 | 10.87 | 10.66 | 9.58 | 9.24 | 9.90 | 8.43 | 8.17 | ||||||
| Workday Inc. | 6.38 | 6.44 | 7.13 | 7.15 | 8.10 | 8.27 | 6.87 | 8.63 | 9.42 | 9.39 | 8.63 | 8.58 | 6.81 | 8.11 | 8.93 | 12.68 | 17.74 | 15.82 | 17.19 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2026 Calculation
BVPS = Total IBM stockholders’ equity ÷ No. shares of common stock outstanding
= 35,537,000,000 ÷ 945,120,805 = 37.60
3 Closing price as at the filing date of International Business Machines Corp. Quarterly or Annual Report.
4 Q3 2026 Calculation
P/BV ratio = Share price ÷ BVPS
= 252.11 ÷ 37.60 = 6.70
5 Click competitor name to see calculations.
The valuation of common stock exhibits a period of significant expansion followed by a correction, driven primarily by substantial fluctuations in share price relative to a steady increase in the underlying book value per share.
- Book Value per Share (BVPS) Progression
- A consistent and linear upward trajectory is observed in the book value per share, which rose from 21.18 USD in March 2022 to 37.60 USD by September 2026. This steady growth indicates a continuous accretion of net assets over the analyzed timeframe.
- Share Price Dynamics
- The share price demonstrated a general bullish trend characterized by periodic volatility. From a base of 136.19 USD in March 2022, the price reached a peak of 285.00 USD in September 2025. A notable correction followed in late 2025 and early 2026, with the price dropping to 206.65 USD in June 2026 before recovering to 252.11 USD by September 2026.
- Price to Book Value (P/BV) Ratio Analysis
- The P/BV ratio shifted from a relatively stable range between 5.29 and 6.43 during 2022 and early 2023 into a phase of valuation expansion. The ratio climbed steadily from December 2023 (7.49) to a peak of 9.55 in September 2025, signaling a heightened market premium over the accounting value. A sharp contraction occurred in 2026, with the ratio falling to 5.65 in June 2026, before an upward correction to 6.70 in the final quarter of the analysis.
- Valuation Correlation
- The divergence between the steadily increasing book value and the more volatile share price resulted in significant swings in the P/BV ratio. The peak valuation in September 2025 was driven by share price growth that far outpaced the growth in book value, while the 2026 correction reflects a realignment of the market price closer to the intrinsic accounting value.
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