Is International Business Machines Corporation (IBM) Undervalued?
Based on the current stock price of $305.09 and a P/E ratio of 36.36,International Business Machines Corporation has a PEG ratio of 3.63.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 3.63, IBM appears to be potentially overvalued relative to its growth rate of 10.01%.
Based on a PEG ratio of 2.98 (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 36.36and dividing it by the annual growth rate of 10.01%.
PEG = 36.36 (P/E) ÷ 10.01 (Growth) = 3.63
Frequently Asked Questions about IBM
What is the current PEG Ratio for International Business Machines Corporation (IBM)?+
The current PEG Ratio for International Business Machines Corporation is 3.63. 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 3.63, International Business Machines Corporation appears to be potentially overvalued. 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 International Business Machines Corporation is 2.98. This metric accounts for dividend yield (2.20%), providing a more complete valuation picture.