What is International Business Machines's PEG ratio?

International Business Machines (IBM) reported PEG ratio of 0.2× in Q1 2026.

What does PEG ratio mean?

The P/E ratio adjusted for how fast earnings are growing.

How do you interpret PEG ratio?

Around 1.0 is often cited as fairly valued for the growth on offer; below 1.0 can flag a growth bargain. Highly sensitive to the growth input and meaningless when growth is zero or negative.

How does PEG ratio compare across companies?

A rough cross-company growth-adjusted screen; treat as directional given its sensitivity to the (trailing) growth basis.

International Business Machines IBM PEG ratio

PEG ratio at other companies

MicrosoftMSFT

0.7×-1.6×

Fair IsaacFICO

1.1×-2.9×

PTCPTC

0.1×-0.7×

NetAppNTAP

2.3×+1.5×

AmazonAMZN

1.4×+1.0×

CognizantCTSH

1.4×-167×

Other financials

Income statement

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Revenue$15.9B+9.5%

Gross profit$8.9B+11.4%

Net income$1.2B+15.3%

EPS (diluted)$1.28+14.3%

Balance sheet

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Cash & equivalents$10.9B-2.7%

Total debt$77.4B+4.9%

Total equity$33.0B+22.7%

Total assets$156.23B+7.2%

Cash flow

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Operating cash flow$5.2B+18.3%

CapEx$232.0M-4.9%

Free cash flow$4.9B+19.7%

Valuation

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Market cap$246.58B-1.3%

Enterprise value$313.07B+0.3%

P/E22.9×-22.7×

P/S3.6×-0.4×

Profitability

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Gross margin58.4%+1.3pp

Net margin15.6%+6.9pp

Returns & leverage

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Return on equity35.9%+14.1pp

Debt / equity2.3×-0.4×

Current ratio0.8×-0.2×

Where this comes from

Calculated from International Business Machines’s reported figures.

market cap/net income=0.2×

Based on the most recent quarter.

The official record: International Business Machines’s 10-Q, filed April 23, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is International Business Machines's PEG ratio?: International Business Machines (IBM) reported PEG ratio of 0.2× in Q1 2026.
What does PEG ratio mean?: The P/E ratio adjusted for how fast earnings are growing.
How do you interpret PEG ratio?: Around 1.0 is often cited as fairly valued for the growth on offer; below 1.0 can flag a growth bargain. Highly sensitive to the growth input and meaningless when growth is zero or negative.
How does PEG ratio compare across companies?: A rough cross-company growth-adjusted screen; treat as directional given its sensitivity to the (trailing) growth basis.