* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,466 M
Debt : $4,033 M
EBITDA : $1,552 M
Net Debt (Debt - Cash): $2,567 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Information technology services
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 12.27
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 7 overlapping fiscal years (max 20).Average Free Cash Flow: $-310 M
Average Revenue: $18,317 M
Revenue Converted To Free Cash Flow (%): -1.7%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-03-31): $15,057 M
Revenue 4 Years Ago (2021-03-31): $19,352 M
Last 5 Years Average Revenue Growth: -4%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-03-31): $239 M
Share Count 5 Years Ago (2021-03-31): $224 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.98
Trailing 12-Month Earnings Per Share (EPS): $2.20
Average Earnings Per Share (EPS): $2.59
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 6 valid ROE years (max 20).Average ROE: -42.4%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $32
52-Week Low: $22
Threshold Price (15% Above 52-Week Low): $26
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $6,955 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 14 points to above Kyndryl Holdings Inc (KD) stock.
Fair Value PE 20, Industry Based PE 25, RCFC Based PE 10, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 5 values, average assigned is 16.42. Value-Trades has assined P/E value 16.42. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.59.
The fair value of Kyndryl Holdings Inc (KD) stock should be (16.42 x $2.59) = $42.52.
