KD Valuation

Kyndryl Holdings Inc

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31.790

+0.28(0.889%)1D

Overview
Forecast
Valuation
Earnings

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 0.47 is considered Undervalued compared with the five-year average of -23.56. The fair price of Kyndryl Holdings Inc (KD) is between 72.58 to 88.20 according to relative valuation methord. Compared to the current price of 31.79 USD , Kyndryl Holdings Inc is Undervalued By 56.2%.

Relative Value

Fair Zone

72.58-88.20

Current Price：31.79

56.2%

Undervalued

12.57

Trailing

Forward

3.51

EV/EBITDA

Kyndryl Holdings Inc. (KD) has a current EV/EBITDA of 3.51. The 5-year average EV/EBITDA is 2.88. The thresholds are as follows: Strongly Undervalued below 1.42, Undervalued between 1.42 and 2.15, Fairly Valued between 3.61 and 2.15, Overvalued between 3.61 and 4.34, and Strongly Overvalued above 4.34. The current Forward EV/EBITDA of 3.51 falls within the Historic Trend Line -Fairly Valued range.

12.46

EV/EBIT

Kyndryl Holdings Inc. (KD) has a current EV/EBIT of 12.46. The 5-year average EV/EBIT is 11.41. The thresholds are as follows: Strongly Undervalued below -51.83, Undervalued between -51.83 and -20.21, Fairly Valued between 43.03 and -20.21, Overvalued between 43.03 and 74.65, and Strongly Overvalued above 74.65. The current Forward EV/EBIT of 12.46 falls within the Historic Trend Line -Fairly Valued range.

0.47

Kyndryl Holdings Inc. (KD) has a current PS of 0.47. The 5-year average PS is 0.30. The thresholds are as follows: Strongly Undervalued below 0.01, Undervalued between 0.01 and 0.15, Fairly Valued between 0.44 and 0.15, Overvalued between 0.44 and 0.58, and Strongly Overvalued above 0.58. The current Forward PS of 0.47 falls within the Overvalued range.

5.89

P/OCF

Kyndryl Holdings Inc. (KD) has a current P/OCF of 5.89. The 5-year average P/OCF is 3.88. The thresholds are as follows: Strongly Undervalued below 0.08, Undervalued between 0.08 and 1.98, Fairly Valued between 5.78 and 1.98, Overvalued between 5.78 and 7.68, and Strongly Overvalued above 7.68. The current Forward P/OCF of 5.89 falls within the Overvalued range.

14.84

P/FCF

Kyndryl Holdings Inc. (KD) has a current P/FCF of 14.84. The 5-year average P/FCF is 79.85. The thresholds are as follows: Strongly Undervalued below -419.81, Undervalued between -419.81 and -169.98, Fairly Valued between 329.68 and -169.98, Overvalued between 329.68 and 579.51, and Strongly Overvalued above 579.51. The current Forward P/FCF of 14.84 falls within the Historic Trend Line -Fairly Valued range.

Kyndryl Holdings Inc (KD) has a current Price-to-Book (P/B) ratio of 5.95. Compared to its 3-year average P/B ratio of 4.43 , the current P/B ratio is approximately 34.51% higher. Relative to its 5-year average P/B ratio of 3.67, the current P/B ratio is about 62.36% higher. Kyndryl Holdings Inc (KD) has a Forward Free Cash Flow (FCF) yield of approximately 3.27%. Compared to its 3-year average FCF yield of -0.63%, the current FCF yield is approximately -619.67% lower. Relative to its 5-year average FCF yield of -4.64% , the current FCF yield is about -170.44% lower.

5.95

P/B

Median3y

4.43

Median5y

3.67

3.27

FCF Yield

Median3y

-0.63

Median5y

-4.64

Competitors Valuation Multiple

The average P/S ratio for KD's competitors is 4.09, providing a benchmark for relative valuation. Kyndryl Holdings Inc Corp (KD) exhibits a P/S ratio of 0.47, which is -88.62% above the industry average. Given its robust revenue growth of 0.11%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Exlservice Holdings Inc

Performance Decomposition

Market capitalization of KD increased by 38.34% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 0.29 to 1.50.

The secondary factor is the Revenue Growth, contributed 0.11%to the performance.

Overall, the performance of KD in the past 1 year is driven by Margin Expansion. Which is more sustainable.

0.11%

3.74B → 3.74B

Revenue Growth

417.24%

0.29 → 1.50

Margin Expansion

-379.01%

-9.29 → 25.92

P/E Change

38.34%