* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for International Business Machines's PEG Ratio or its related term are showing as below:
XTER:IBM'
s PEG Ratio Range Over the Past 10 Years
Min: 1.8 Med: 5.09 Max: 20.93
Current: 2.75
During the past 13 years, International Business Machines's highest PEG Ratio was 20.93. The lowest was 1.80. And the median was 5.09.
XTER:IBM's PEG Ratio is ranked worse than 76.37% of 821
companies
in the Software industry
Industry Median: 1.28
vs XTER:IBM: 2.75
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
International Business Machines (XTER:IBM) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
International Business Machines PEG Ratio Related Terms
International Business Machines PEG Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, International Business Machines's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
International Business Machines PEG Ratio vs Software Industry
For the Software industry and Technology sector, International Business Machines's PEG Ratio distribution charts can be found below:
* The bar in red indicates where International Business Machines's PEG Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
International Business Machines (XTER:IBM) has a PEG Ratio of 2.81 as of Jun. 24, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on International Business Machines and its competitors. This is 45% below median its historical median of 5.09. Over the past decade, International Business Machines' PEG Ratio has ranged from 1.80 to 20.93. According to the industry distribution chart, International Business Machines ranks #627 out of 821 companies in the Software industry, placing it in the top 76.4%.
Is International Business Machines' PEG Ratio too high?
International Business Machines' current PEG Ratio of 2.81 is 45% below median its 10-year median of 5.09. Over the past 10 years, this metric has ranged from a low of 1.80 to a high of 20.93. The Software industry median PEG Ratio is 1.28. International Business Machines' value of 2.81 is 119.5% above this industry median. Based on the distribution chart, International Business Machines ranks #627 out of 821 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, International Business Machines has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does International Business Machines' PEG Ratio compare to ACN and FISV?
According to the Software industry distribution chart, International Business Machines ranks #627 out of 821 companies for PEG Ratio. This places International Business Machines in the lower half of its industry. The industry median PEG Ratio is 1.28. International Business Machines' value of 2.81 is 119.5% above this benchmark. Historically, International Business Machines' own PEG Ratio has ranged from 1.80 to 20.93 over the past decade. While the company's 10-year median is 5.09 vs. the industry median of 1.28, International Business Machines has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a Software company?
The median PEG Ratio among Software companies is 1.28, based on 821 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Business Machines's current PEG Ratio of 2.81 is 119.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on International Business Machines and its competitors. For the Software industry, the median PEG Ratio is 1.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Business Machines's current PEG Ratio is 2.81, which is 45% below median its own 10-year median of 5.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is International Business Machines stock overvalued right now?
Based on GuruFocus' analysis, International Business Machines (XTER:IBM) is currently considered Modestly Overvalued. The stock's GF Value™ is €209.60, compared to a current price of €232.50 — trading 10.9% above its estimated fair value. The current PEG Ratio is 2.81, which is 45% below median its 10-year median of 5.09 and 119.5% above the Software industry median of 1.28. International Business Machines' overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For International Business Machines (XTER:IBM), the current PEG Ratio is 2.81 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is International Business Machines (XTER:IBM) Overvalued in 2026?
Based on GuruFocus' analysis, International Business Machines stock appears to be overvalued.
The current stock price of €232.50 is trading 10.9% above its estimated GF Value™ of €209.60.
GuruFocus considers International Business Machines to be Modestly Overvalued.
Key valuation signals for XTER:IBM:
PEG Ratio: 2.81 (45% below median its 10-year median of 5.09)
GF Value™: €209.60 vs. price of €232.50 (10.9% above fair value)
Industry Position: 119.5% above the Software median (#627 of 821)
No single metric tells the full story. See the XTER:IBM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
International Business Machines Business Description
Incorporated in 1911, International Business Machines, or IBM, is one of the oldest technology companies in the world. It provides software, IT consulting services, and hardware to help business customers modernize their technology workflows. IBM operates in 175 countries and employs approximately 300,000 people. The company has a robust roster of business partners to service its clients, which includes 95% of all Fortune 500 companies. IBM's products, including Red Hat, watsonx, and mainframes, handle some of the world's most important data workloads in areas like finance and retail.
69GF Score
Get the complete analysis for XTER:IBM
PEG Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XTER:IBM has been successfully added to your 
