Intrinsiqq
Kyndryl Holdings Inc. logoKyndryl Holdings Inc.KD
$13.21+0.15%
Kyndryl Holdings Inc. logo

Kyndryl Holdings Inc.

KD

$13.21

+$0.02 (+0.15%)

⊜ Compare
ProfitabilityThin marginsGrowthModeratingCash FlowThin conversionValuationNot cheap
What stands out

Operating margin is thin at 3.83%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.

What's changing

Revenue growth slowed to 0.2%, essentially flat. This is a business that needs a catalyst.

What deserves caution

At 36x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of $4.93B represents 14.5x FCF, leverage limits flexibility.

Valuation context

35.7x earnings, 19.4x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.

Price History

-52.0%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$2.88B
EPS$0.37
P/E35.70
P/FCF19.44
EV/EBITDA14.40
FCF Yield5.1%
Div. Yield—
Net Debt/FCF35.3x
52-Week Range
$10.59$28.92

Profitability & Returns

Revenue (TTM)

$14.97B

▲ +0.2% YoY

Net Income (TTM)

$87M

▼ -21.4% YoY

Op. Margin

3.58%

▲ +0.5pp YoY

ROIC

5.12%

▼ -0.8pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$148M

▲ +0.9% YoY

Op. Cash Flow (TTM)

$762M

▲ +0.6% YoY

Net Debt

$5.22B

Cash & Equiv.

$2.10B

5Y CAGR: -4.9%

Continue Research

SourceComputed from the 10-Q filed 29 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 8 Aug 2026. How this is calculated.

Price from market data, last close as of 16 Oct 2026. Fiscal year ends Mar. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is Kyndryl Holdings (KD) overvalued?

At a P/E of 35.7 and a price-to-free-cash-flow of 19.4, Kyndryl Holdings (KD) trades above a two-stage DCF intrinsic value of about $-12.03 per share, so at $13.21 the stock looks overvalued (191.0% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Kyndryl Holdings scores 43/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Kyndryl Holdings's fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $-12.03 per share for KD, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $-9.02. At today's $13.21, that puts the stock about 191.0% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Kyndryl Holdings a high-quality business?+

Kyndryl Holdings scores 43 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 3.6% operating margin and a 5.1% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Is Kyndryl Holdings a good stock to buy right now?+

That depends on valuation and quality together, not either alone. KD currently trades above its estimated intrinsic value and scores 43/100 on quality (mixed). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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