By Simply Wall St
Publication Date: 2025-12-07 09:12:00
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If you are wondering whether International Business Machines is still a value play after its big run, or if the easy money has already been made, this breakdown will help you decide whether the current price makes sense.
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IBM has quietly turned into a strong performer, with the stock up 40.0% year to date and 32.7% over the last year, even though the last week and month have been relatively flat at around 0% moves.
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Those gains have come as investors have warmed up to IBM’s pivot toward hybrid cloud and AI focused services, along with a perception that its cash flows are getting more resilient. At the same time, long time holders are debating whether the rally that lifted the share price to around $307.94 has already priced in most of that transformation.
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Despite the optimism, IBM only scores 1/6 on our valuation checks. Next we will examine discounted cash flow, multiples, and market based signals, before finishing with a more intuitive way to tie all those valuation methods…
