IBMNEUTRAL

EV/EBITDA

19.1x

Updated 1928h ago

Sector Performance

70th percentile

IBM

19.1x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

An EV/EBITDA of 19.1x means that for every dollar of earnings before interest, taxes, depreciation, and amortization (a proxy for cash operating profit), the market values the company’s enterprise (debt + equity) at $19.10.

This is above the sector median of 14.5x, placing IBM in the 72nd percentile among its peers — indicating a premium valuation relative to the typical company in the same space. The metric has been perfectly stable over the last eight quarters, with no year-over-year change (0.0%) and no quarter-over-quarter change (0.0%). A high but unchanging valuation like this suggests the market has consistently priced in above-average expectations without recent shifts in sentiment or fundamentals. For an investor, this stable premium implies limited upside from multiple expansion but also no sudden valuation risk from a compression, making it a neutral risk factor. Given the overall NEUTRAL verdict on the stock, the EV/EBITDA level and trend support that view — the metric does not signal clear overvaluation or undervaluation, just steady positioning at a premium.

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.

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

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

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.