International Business Machines Corp. (NYSE:IBM)

Price to Earnings (P/E) Ratio

The P/E ratio data begins from March 31, 2020, showing an initial upward trend through late 2020 and into 2021, with values increasing from 19.3 to over 23 in several quarters. There is a notable spike in the last quarter of 2021 and through 2022, peaking at 95.23 before decreasing to a range between approximately 18 and 41 from 2023 into mid-2025. This suggests significant volatility in earnings valuation during 2022, followed by stabilization at a moderately higher valuation level than the early 2020s.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio exhibits a gradual increase from late 2020 into 2021, with values climbing from around 15.9 to near 20 by the end of 2021. In 2022, the ratio fluctuates, declining to a low near 13.98 and then recovering modestly by late 2022. From 2023 onwards, the ratio resumes an upward trend, reaching peaks over 25 by early 2025. This pattern indicates periods of both compression and expansion in the company's operating profit valuation relative to its share price, with growth evident in more recent periods.

Price to Sales (P/S) Ratio

The P/S ratio steadily increases over the entire period shown, starting below 1.5 in early 2020 and rising above 3.5 by 2025. Notable accelerations occur throughout 2023 and 2024, indicating that the market is valuing the company's sales at increasingly higher multiples over time. This trend likely reflects positive investor sentiment towards revenue growth or revenue quality improvements.

Price to Book Value (P/BV) Ratio

The P/BV ratio declines from above 5.5 in early 2020 to lows near 4.65 in late 2020, followed by a rebound and general upward movement through 2021 and 2022. There is increased volatility in 2023 and 2024, with peaks near 8.75 and some subsequent declines but generally maintaining a higher valuation than the early years. This fluctuation suggests periods of varying investor confidence in the company’s net asset value, with a tendency toward higher valuations in recent years.

Share Price Trend

The share price exhibited notable volatility over the observed periods. Initially, it declined from $126.27 in March 2020 to a low of $110.56 in September 2020. Subsequently, the price recovered and showed a generally upward trajectory, reaching $142.01 in March 2021. A minor dip occurred around June to December 2021, after which the price steadily increased, peaking significantly at $257.75 in December 2024. Despite slight fluctuations thereafter, the share price remained elevated above the 2020-2022 range, indicating strong growth momentum into 2025.

Earnings Per Share (EPS) Trend

EPS data is available beginning March 2021 and shows an overall upward trend with some variability. Starting at 6.26, EPS slightly declined over the next few quarters, reaching a low of 1.4 in December 2022. This decrease suggests an adverse performance or extraordinary event during that time. After this trough, EPS rebounded impressively, peaking at 9.15 by December 2023. Subsequent quarters demonstrate a modest decline with fluctuations, settling around 5.89 to 6.26 in the first half of 2025. The initial drop and subsequent recovery point to temporary challenges followed by a period of renewed earnings strength.

Price-to-Earnings (P/E) Ratio Trend

The P/E ratio began at 19.3 in March 2021 and increased steadily, reaching an extremely high level of 95.23 in December 2022. This spike corresponds with the pronounced drop in EPS, which inflated the P/E ratio artificially due to depressed earnings. Following this period, the ratio decreased, stabilizing between 18 and 23 in 2023, reflecting a normalization as earnings recovered. However, in 2024 and into 2025, the P/E ratio displays increased volatility, climbing to as high as 41.6 in June 2025 despite rising share prices and somewhat declining EPS. This suggests that market valuations are becoming less aligned with earnings performance, possibly due to changes in investor expectations or external factors influencing stock price independently.

Overall Insights

The financial data reveals a period marked by significant earnings pressure around late 2022, affecting valuation metrics. Yet, the subsequent recovery in EPS, coupled with a robust increase in share price, demonstrates resilience and positive market sentiment. The divergence between P/E ratio and EPS towards the latest quarters indicates potential market speculation or anticipation of future growth beyond current earnings. Monitoring is advised to assess whether this divergence stabilizes or signals emerging risk factors.

Share Price

The share price experienced fluctuations over the reported quarters, showing notable volatility. From March 2020 to December 2021, the price generally hovered around the 110 to 140 US$ range, with slight ups and downs. Beginning in 2023, the share price exhibited a stronger upward trend, climbing significantly from approximately 125.89 US$ in March 2023 to a peak of 260.51 US$ by June 2025. This suggests growing investor confidence or positive market sentiment in this period despite interim oscillations.

Operating Profit Per Share (OPPS)

Operating profit per share data starts from March 2020 and shows a steady upward trajectory. Early values around 6.2 US$ in December 2020 gradually increased to approximately 9.01 US$ by March 2023, continuing to rise to 11.05 US$ by June 2025. This consistent growth in OPPS indicates improving operational efficiency and profitability on a per-share basis over the analyzed periods.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio, reflecting the market price relative to operating profit per share, showed a degree of variability. Initially around 15.9 in March 2020, the ratio increased to approximately 19.92 by December 2020. It then exhibited some volatility, decreasing to around 14.35 in March 2023 before increasing again to a peak of 25.48 in March 2025. The upward trend towards the end of the period suggests the share price has been rising faster than operating profit, indicating growing market expectations or a premium valuation despite operational improvements.

Overall Trends and Insights

Over the examined period, the company demonstrated steady growth in operating profit per share, signaling improved profitability. While the share price displayed initial volatility, it embarked on a significant appreciation trajectory from early 2023 onward. The price to operating profit ratio's fluctuation indicates varying investor sentiment, with recent elevated ratios pointing to heightened market optimism or expectations beyond just operational earnings growth. This pattern suggests the market values the company's future prospects strongly, possibly reflecting factors such as innovation, market position, or strategic developments not fully captured by operating profit alone.

The share price exhibits notable fluctuations over the observed periods, initially maintaining a range between approximately $110 and $142 from early 2020 through mid-2023. A substantial increase begins towards the end of 2023, where the share price climbs sharply from $184.13 in December 2023 to a peak of $260.51 by June 2025. Despite some minor retracements, the overall trajectory in the later period is strongly upward, indicating robust market appreciation.

Sales per share data, available from March 2021 onward, shows a gradual decline from $82.39 to around $63.77 by March 2022. After this initial decrease, sales per share stabilize and remain relatively constant over the subsequent quarters, fluctuating slightly around the mid-60s range. This suggests that sales performance per share plateaued after an early decrease, maintaining steady revenue generation on a per-share basis.

The price-to-sales (P/S) ratio displays a clear increasing trend throughout the periods with available data. Starting at 1.47 in March 2021, it rises consistently over time, peaking at 3.81 in March 2025. This increase indicates that the market valuation relative to sales has nearly doubled over this timeframe. The rise in P/S ratio coupled with the steady sales per share implies that share price growth outpaced sales growth significantly, reflecting increased investor confidence or expectations of future growth beyond current sales performance.

Trend Summary

The financial data suggests a strong positive market sentiment towards the stock in the most recent periods, as evidenced by increasing share prices and an expanding P/S ratio.

Sales per share demonstrated initial weakness but stabilized over the mid-to-late periods, indicating steady operational performance despite market volatility.

The divergence between P/S growth and relatively flat sales per share indicates greater investor valuation premiums are being assigned to the company over time.

Share Price

The share price exhibited notable fluctuations over the observed quarters. Initially, the price showed a decline from 126.27 to 110.56 US$ between March and September 2020, followed by a recovery to approximately 123.92 US$ by December 2020. Through 2021 and into early 2022, prices remained relatively stable, hovering in the range of 120 to 136 US$. From 2023 onwards, there was a clear upward trend, with the share price increasing from 125.89 US$ in March 2023 to a peak of 260.51 US$ in June 2025, marking a significant growth trajectory particularly from late 2023 to mid-2025.

Book Value Per Share (BVPS)

The book value per share displayed gradual growth throughout the period but with some volatility. Starting at 22.52 US$ in March 2020, it rose moderately to 24.79 US$ in September 2021 before dipping temporarily to 21.02 US$ at the end of 2021. After this dip, BVPS showed consistent recovery and steady upward movement, reaching 29.53 US$ by June 2025. This pattern suggests ongoing accumulation of net assets or retained earnings per share over the longer term, despite some intermittent declines.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio reflected changing market sentiment relative to the company's net asset value. It began at 5.61 in March 2020, then fluctuated considerably with a low near 4.65 in September 2020 and a peak of 7.49 in December 2023. From 2024 onward, the ratio consistently increased, reaching a high of 8.82 by June 2025. This indicates that the market valuation of the shares grew substantially faster than the book value, suggesting investor optimism or expectations of higher future returns. The rising P/BV ratio, particularly in the later periods, may also imply the stock became more growth-oriented or possibly overvalued relative to its book value.