Kyndryl Holdings, Inc. (KD) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+3617.5%

$516.35

vs $13.89 price

Levered DCF

$132.43

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.3

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	15.08×	28.81×	-14.56×	-2.44×	-1.28×	-4.53×	-9.68×	-9.3×
P/B	2.55×	5.96×	4.87×	2.45×	1.06×	3.3×	1.55×	0×
P/S	0.2×	0.48×	0.31×	0.2×	0.16×	0.49×	0.45×	0.42×
EV / EBITDA	1.63×	6.08×	6.62×	9.31×	-30.38×	-65.72×	2.97×	0×
Gross margin	21.8%	20.9%	17.8%	14.8%	11.3%	11.3%	12.8%	11.7%
Operating margin	4.2%	3.7%	0.6%	-2.3%	-3.6%	-3.6%	-3.1%	-2.0%
Net margin	1.3%	1.7%	-2.1%	-8.1%	-12.3%	-12.3%	-4.7%	-4.5%
Current ratio	0.88×	1.07×	1.03×	1.02×	1.3×	1.3×	0.92×	0×
Debt / equity	4.22×	3.25×	4.08×	3.11×	1.66×	1.66×	0.23×	0×
Interest coverage	7.13×	5.52×	0.74×	-4.11×	-10.45×	-10.45×	-8.3×	-5.12×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	16.9%	20.7%	-33.5%	-100.7%	-83.3%	-83.3%	-16.0%	0.0%
Return on invested capital	3.7%	4.9%	1.4%	-5.5%	-7.3%	-7.3%	-7.2%	0.0%
Return on assets	1.6%	2.4%	-3.2%	-12.0%	-17.4%	-17.4%	-8.0%	0.0%
Free cash flow yield	11.4%	4.6%	-4.0%	-5.9%	-29.6%	-9.5%	-0.6%	-9.7%
Earnings yield	6.6%	3.5%	-6.9%	-41.1%	-78.4%	-25.3%	-10.3%	-10.7%
Enterprise value	$5.3B	$9.4B	$7.5B	$5.7B	$5.3B	$11.5B	$10.4B	$0
Net debt / EBITDA	0.71×	1.4×	2.28×	3.88×	-13.58×	-13.58×	0.38×	0×
Cash conversion cycle (days)	-10	-9	-3	-12	19	19	15	0