IBM (IBM) Fundamental Analysis: Revenue, Earnings & Valuation

7.93 / 10

Outperform

Fundamentally, IBM is rated Outperform with a 7.9/10 score. Strengths include fast inventory turnover and a solid asset‑liability ratio, while cash‑to‑market and long‑term debt ratios lag. The fund‑flow model gives a 7.93 score, driven chiefly by a strong Asset‑MV factor.

Analysis Checks(8/10)

Asset-liability ratio (%)

Value78.44

Score2/3

Weight1.31%

1M Return0.46%

Shareholders’ equity attributable to parent company / Total liabilities (%)

Value0.27

Score2/3

Weight0.55%

1M Return0.19%

Operating cycle

Value61.08

Score2/3

Weight-0.05%

1M Return-0.02%

Days sales outstanding

Value45.08

Score2/3

Weight3.63%

1M Return1.29%

Quick ratio

Value0.92

Score2/3

Weight-0.01%

1M Return-0.00%

Income tax / Total profit (%)

Value-2.33

Score3/3

Weight9.97%

1M Return3.64%

Long-term debt to working capital ratio (%)

Value6.44

Score0/3

Weight-6.71%

1M Return-2.76%

Asset-MV

Value-0.55

Score3/3

Weight90.57%

1M Return21.94%

Inventory turnover days

Value15.99

Score2/3

Weight8.14%

1M Return2.91%

Cash-MV

Value0.06

Score1/3

Weight-7.39%

1M Return-3.01%

Is IBM undervalued or overvalued?

IBM scores 7.93/10 on fundamentals and holds a Discounted valuation at present. Backed by its 35.23% ROE, 15.69% net margin, 21.31 P/E ratio, 6.90 P/B ratio, and 73.72% earnings growth, these metrics solidify its Outperform investment rating.