INTERNATIONAL BUSINESS MACHINES CORP (IBM) — Moat, Quality & Fair Value

INTERNATIONAL BUSINESS MACHINES CORP (IBM) has a Wide economic moat and a quality score of 69/100. It operates in the Information Technology sector.

Industry: IT Services & Consulting · Information Technology

Market share (2025): 1.4% of IT consulting & outsourcing · 6.6% of Infrastructure, data & developer software (Software) · 3.5% of Servers & enterprise storage (Infrastructure)

Themes: Cloud software (core) · AI software (partial)

Economic moat: Wide. Its competitive advantage is anchored in Switching Costs, and Intangible Assets. A wide moat indicates durable advantages likely to protect returns on capital for many years. Learn more about how we classify moats in our guide to economic moats.

Quality score: 69/100. This score combines seven weighted pillars — returns on capital, margin strength, cash generation, financial health, durability, management, and moat & position. See how the quality score works.

Fair value: Our base owner-earnings estimate is $289.25 (range $124.86–$453.64). At $240.47, IBM trades a 17% discount to its estimated fair value — below fair value. Read how we calculate fair value.

Management: Mixed. Our management grade evaluates capital allocation, shareholder returns, compensation, dilution, buyback timing, and insider ownership.

Explore the full interactive analysis for IBM below — including the price & fair-value chart, financial statements, and the complete management evaluation. New to the framework? Start with the MoatScope guide.