IBMNEUTRAL

IBM EV/EBITDA Analysis

16.9x

Higher than 25% of TECHNOLOGY sector peers

Updated 995h ago·SEC filings & market data

Key Takeaway

EV/EBITDA is a valuation multiple showing how many years of operating cash earnings (before interest, taxes, depreciation, and amortization) it would take to pay the company's enterprise value; at 16.9x, IBM is priced below the sector median of 24.0x, sitting at the 25th percentile among technology peers.

Sector Performance

25th percentile

IBM

16.9x

Sector Median

24.0x

Sector Avg

28.9x

Prior Period

16.9x(Aug 2026)

→ Stable

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Deep Analysis

The trend over the last eight quarters is stable, with the most recent reading unchanged from the prior quarter's 16.9x and down just 0.2% from the 17.0x recorded two quarters ago; a year-over-year comparison is not available. Because the multiple is already well below the sector norm and holding steady rather than compressing, downside from further de-rating looks limited, but the lack of upward momentum also suggests no valuation-driven catalyst. This combination lowers the risk of paying too much for the stock while offering modest

Frequently Asked Questions

What does the EV/EBITDA tell investors about IBM?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does IBM's EV/EBITDA compare to its sector?

IBM's EV/EBITDA of 16.9x compares to a TECHNOLOGY sector median of 24.0x, placing it in the 25th percentile.

Who are IBM's closest peers by EV/EBITDA?

The closest TECHNOLOGY peers by EV/EBITDA include: CSCO (24.0x), TXN (25.6x), DELL (21.5x), ORCL (18.3x), HPE (15.8x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.