KD PE Ratio & Valuation,Is KD Overvalued

KD Relative Valuation

KD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, KD is overvalued; if below, it's undervalued.

Historical Valuation

Kyndryl Holdings Inc (KD) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.36 is considered Undervalued compared with the five-year average of -20.87. The fair price of Kyndryl Holdings Inc (KD) is between 155.74 to 172.57 according to relative valuation methord. Compared to the current price of 27.09 USD , Kyndryl Holdings Inc is Undervalued By 82.61%.

Relative Value

Fair Zone

155.74-172.57

Current Price：27.09

82.61%

Undervalued

7.66

2.79

EV/EBITDA

Kyndryl Holdings Inc. (KD) has a current EV/EBITDA of 2.79. The 5-year average EV/EBITDA is 2.89. The thresholds are as follows: Strongly Undervalued below 1.48, Undervalued between 1.48 and 2.19, Fairly Valued between 3.60 and 2.19, Overvalued between 3.60 and 4.30, and Strongly Overvalued above 4.30. The current Forward EV/EBITDA of 2.79 falls within the Historic Trend Line -Fairly Valued range.

9.01

EV/EBIT

Kyndryl Holdings Inc. (KD) has a current EV/EBIT of 9.01. The 5-year average EV/EBIT is 11.31. The thresholds are as follows: Strongly Undervalued below -49.29, Undervalued between -49.29 and -18.99, Fairly Valued between 41.61 and -18.99, Overvalued between 41.61 and 71.91, and Strongly Overvalued above 71.91. The current Forward EV/EBIT of 9.01 falls within the Historic Trend Line -Fairly Valued range.

0.36

Kyndryl Holdings Inc. (KD) has a current PS of 0.36. The 5-year average PS is 0.31. The thresholds are as follows: Strongly Undervalued below 0.02, Undervalued between 0.02 and 0.16, Fairly Valued between 0.45 and 0.16, Overvalued between 0.45 and 0.59, and Strongly Overvalued above 0.59. The current Forward PS of 0.36 falls within the Historic Trend Line -Fairly Valued range.

3.89

P/OCF

Kyndryl Holdings Inc. (KD) has a current P/OCF of 3.89. The 5-year average P/OCF is 3.94. The thresholds are as follows: Strongly Undervalued below 0.25, Undervalued between 0.25 and 2.10, Fairly Valued between 5.79 and 2.10, Overvalued between 5.79 and 7.63, and Strongly Overvalued above 7.63. The current Forward P/OCF of 3.89 falls within the Historic Trend Line -Fairly Valued range.

7.02

P/FCF

Kyndryl Holdings Inc. (KD) has a current P/FCF of 7.02. The 5-year average P/FCF is 74.09. The thresholds are as follows: Strongly Undervalued below -406.19, Undervalued between -406.19 and -166.05, Fairly Valued between 314.22 and -166.05, Overvalued between 314.22 and 554.36, and Strongly Overvalued above 554.36. The current Forward P/FCF of 7.02 falls within the Historic Trend Line -Fairly Valued range.

Kyndryl Holdings Inc (KD) has a current Price-to-Book (P/B) ratio of 4.77. Compared to its 3-year average P/B ratio of 4.89 , the current P/B ratio is approximately -2.49% higher. Relative to its 5-year average P/B ratio of 3.80, the current P/B ratio is about 25.45% higher. Kyndryl Holdings Inc (KD) has a Forward Free Cash Flow (FCF) yield of approximately 4.15%. Compared to its 3-year average FCF yield of -1.99%, the current FCF yield is approximately -308.63% lower. Relative to its 5-year average FCF yield of -3.95% , the current FCF yield is about -205.20% lower.

4.77

P/B

Median3y

4.89

Median5y

3.80

4.15

FCF Yield

Median3y

-1.99

Median5y

-3.95

Competitors Valuation Multiple

The average P/S ratio for KD's competitors is 8.50, providing a benchmark for relative valuation. Kyndryl Holdings Inc Corp (KD) exhibits a P/S ratio of 0.36, which is -95.73% above the industry average. Given its robust revenue growth of -1.40%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of KD decreased by 28.64% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 4.55 to 15.18.

The secondary factor is the Revenue Growth, contributed -1.40%to the performance.

Overall, the performance of KD in the past 1 year is driven by P/E Change. Which is more unsustainable.

-1.40%

3.77B → 3.72B

Revenue Growth

-260.53%

-1.14 → 1.83

Margin Expansion

233.29%

4.55 → 15.18

P/E Change

-28.64%

37.96 → 27.09

Mkt Cap Growth

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Frequently Asked Questions

Is Kyndryl Holdings Inc (KD) currently overvalued or undervalued?

What is Kyndryl Holdings Inc (KD) fair value?

KD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Kyndryl Holdings Inc (KD) is between 155.74 to 172.57 according to relative valuation methord.

How does KD's valuation metrics compare to the industry average?

What is the current P/B ratio for Kyndryl Holdings Inc (KD) as of Jan 09 2026?

As of Jan 09 2026, Kyndryl Holdings Inc (KD) has a P/B ratio of 4.77. This indicates that the market values KD at 4.77 times its book value.

What is the current FCF Yield for Kyndryl Holdings Inc (KD) as of Jan 09 2026?

As of Jan 09 2026, Kyndryl Holdings Inc (KD) has a FCF Yield of 4.15%. This means that for every dollar of Kyndryl Holdings Inc’s market capitalization, the company generates 4.15 cents in free cash flow.

What is the current Forward P/E ratio for Kyndryl Holdings Inc (KD) as of Jan 09 2026?

As of Jan 09 2026, Kyndryl Holdings Inc (KD) has a Forward P/E ratio of 7.66. This means the market is willing to pay $7.66 for every dollar of Kyndryl Holdings Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Kyndryl Holdings Inc (KD) as of Jan 09 2026?

As of Jan 09 2026, Kyndryl Holdings Inc (KD) has a Forward P/S ratio of 0.36. This means the market is valuing KD at $0.36 for every dollar of expected revenue over the next 12 months.

KD Valuation