Return on Equity (ROE)
Updated 1928h ago
Sector Performance
83th percentileIBM
32.4%
Sector Median
13.8%
Sector Avg
31.4%
Deep Analysis
IBM (IBM) has a Return on Equity (ROE) of 32.4% as of April 2026.
IBM's Return on Equity (ROE) is 134.8% above the sector median, a significant divergence that warrants closer examination. In context: ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about IBM?
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
How is the Return on Equity (ROE) calculated?
Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.
Who are IBM's closest peers by Return on Equity (ROE)?
The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).
The Formula
Net Income / Shareholders' Equity
Why It Matters
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
Master IBM's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full IBM research report →IBM
32.4%
Sector Median
13.8%
Sector Avg
31.4%
How IBM's Return on Equity (ROE) compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.