Is IBM (IBM) Undervalued?
Based on the current stock price of $232.20 and a P/E ratio of 18.58,IBM has a PEG ratio of 1.86.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 1.86, IBM appears to be fairly valued relative to its growth rate of 10.00%.
Based on a PEG ratio of 1.44 (adjusted for dividends).
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How we analyzed IBM
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 18.58and dividing it by the annual growth rate of 10.00%.
PEG = 18.58 (P/E) ÷ 10.00 (Growth) = 1.86
Frequently Asked Questions about IBM
What is the current PEG Ratio for IBM (IBM)?+
The current PEG Ratio for IBM is 1.86. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is IBM stock undervalued right now?+
Based on the PEG ratio of 1.86, IBM appears to be fairly valued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for IBM?+
The PEGY ratio for IBM is 1.44. This metric accounts for dividend yield (2.91%), providing a more complete valuation picture.