International Business Machines Corporation (IBM) PEG Ratio

Fairly Valued

PE ratio relative to earnings growth — is the valuation justified?

1.51

PEG Ratio

1.51

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$214.19

TTM EPS

$11.30

P/E Ratio

18.95

Growth Rate

12.6%

5-Year EPS CAGR

Sector

Technology

Information Technology Services

Calculated

7/28/2026

1:48:09 AM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

2.33

25th Percentile

1.32

75th Percentile

4.00

IBM PEG (1.51) vs Industry Median (2.33): 35% discount

Symbol	Company	PEG	P/E	Growth	vs IBM
FI	Fiserv, Inc.	0.32	11.1	34.7%	-79%
ACN	Accenture plc	1.32	11.7	8.9%	-12%
WMT	Walmart Inc.	3.34	38.4	11.5%	+122%
ORCL	Oracle Corporation	4.00	19.7	4.9%	+166%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

International Business Machines Corporation (IBM) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on IBM

Compare with peers

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International Business Machines Corporation (IBM) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on IBM

Compare with peers

Explore