IBMNEUTRAL

IBM EV/EBITDA Analysis

16.9x

Higher than 25% of TECHNOLOGY sector peers

Updated 77h ago·SEC filings & market data

Key Takeaway

IBM’s EV/EBITDA of 17.0x means investors pay $17 for each dollar of operating earnings before interest, taxes, depreciation, and amortization — a valuation measure that accounts for debt and cash.

Sector Performance

25th percentile

IBM

16.9x

Sector Median

24.3x

Sector Avg

29.8x

Prior Period

17.0x(Aug 2026)

→ Stable

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Deep Analysis

Against TECHNOLOGY sector peers, this is far below the sector median of 27.4x, placing IBM in the 25th percentile, or cheaper than roughly three-quarters of its sector. The trend is largely N/A: year-over-year change and the last 8 quarters are not available, but quarter-over-quarter the multiple rose 11.5% from 15.3x to 17.0x. This combination — a low valuation versus peers but a sharp recent increase — suggests investors are re-rating IBM higher, which adds some momentum risk if the revision stalls. The metric supports the overall NEUTRAL verdict: the below-median level offers downside cushion, while the rapid QoQ climb reduces the margin of safety at current prices.

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 24.3x, placing it in the 25th percentile.

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

The closest TECHNOLOGY peers by EV/EBITDA include: CSCO (24.3x), TXN (25.6x), DELL (21.5x), ORCL (18.3x), INTC (32.4x).

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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.