Latest Ratios: P/E Ratio 10.3x · EV/EBITDA 11.0x · ROE 3.7%. (2014–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.4B | $7.2B | $4.4B | $1.7B | $3.8B | $8.6B | $15.4B | $7.1B | $2.9B | $2.2B | $322M |
| Enterprise Value | $9.3B | $40.4B | $41.0B | $42.0B | $39.9B | $36.4B | $23.7B | $18.3B | $13.5B | $7.0B | $2.8B |
| P/E Ratio → | 10.33 | 8.23 | 1.31 | — | — | — | — | — | — | — | — |
| P/S Ratio | 2.37 | 0.63 | 0.42 | 0.17 | 0.40 | 1.10 | 2.68 | 1.73 | 1.02 | 1.37 | 0.30 |
| P/B Ratio | 1.10 | 0.26 | 0.19 | 0.08 | 0.16 | 0.35 | 0.60 | 0.69 | 0.52 | 0.49 | 0.11 |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | 8.63 | 2.13 | 2260.15 | 0.81 | 1.32 | 7.13 | 47.92 | 24.23 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.54 | 3.97 | 4.21 | 4.27 | 4.65 | 4.14 | 4.43 | 4.83 | 4.32 | 2.65 |
| EV / EBITDA | 11.04 | 7.92 | 9.09 | 35.88 | 10.56 | 11.28 | 10.18 | 11.26 | 14.83 | 15.18 | 15.14 |
| EV / EBIT | 40.53 | 16.15 | 31.28 | — | 44.38 | 51.54 | 30.92 | 38.05 | 80.13 | 84.97 | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 22.6% | 22.6% | 21.5% | 19.3% | 20.8% | 22.8% | 27.0% | 25.3% | 22.3% | 25.3% | 25.2% |
| Operating Margin | 13.4% | 13.4% | 11.2% | -24.7% | 5.9% | 7.3% | 11.7% | 11.6% | 6.0% | 5.1% | -4.0% |
| Net Profit Margin | 8.3% | 8.3% | 32.0% | -43.1% | -13.6% | -15.2% | -11.9% | -10.7% | -15.4% | -20.2% | -26.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.7% | 3.7% | 15.1% | -19.4% | -5.2% | -4.7% | -3.8% | -5.6% | -8.6% | -8.8% | -11.0% |
| ROA | 1.2% | 1.2% | 4.5% | -5.7% | -1.7% | -1.8% | -1.5% | -1.7% | -2.5% | -3.1% | -4.1% |
| ROIC | 1.9% | 1.9% | 1.4% | -3.1% | 0.7% | 1.0% | 1.8% | 1.9% | 1.0% | 0.8% | -0.7% |
| ROCE | 2.2% | 2.2% | 1.8% | -3.8% | 0.9% | 1.1% | 1.7% | 2.1% | 1.2% | 0.9% | -0.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.71 | 1.71 | 1.88 | 2.38 | 1.85 | 1.54 | 0.96 | 1.65 | 2.32 | 1.49 | 1.44 |
| Debt / EBITDA | 9.32 | 9.32 | 9.87 | 41.04 | 11.84 | 11.71 | 10.56 | 10.45 | 14.06 | 14.45 | 23.19 |
| Net Debt / Equity | — | 1.20 | 1.55 | 2.00 | 1.49 | 1.13 | 0.33 | 1.08 | 1.93 | 1.07 | 0.83 |
| Net Debt / EBITDA | 6.51 | 6.51 | 8.12 | 34.45 | 9.56 | 8.62 | 3.59 | 6.87 | 11.68 | 10.38 | 13.40 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | 1.40 | 1.40 | 0.68 | -1.11 | 0.48 | 0.43 | 0.58 | 0.50 | 0.26 | 0.20 | -0.07 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.60 | 2.60 | 1.28 | 1.32 | 1.13 | 1.07 | 2.40 | 1.77 | 0.87 | 1.01 | 1.49 |
| Quick Ratio | 2.60 | 2.60 | 1.28 | 1.32 | 1.13 | 1.07 | 2.36 | 1.74 | 0.85 | 0.97 | 1.41 |
| Cash Ratio | 2.10 | 2.10 | 0.87 | 0.93 | 0.81 | 0.74 | 2.13 | 1.45 | 0.62 | 0.77 | 1.22 |
| Asset Turnover | — | 0.14 | 0.14 | 0.13 | 0.12 | 0.11 | 0.10 | 0.13 | 0.13 | 0.12 | 0.13 |
| Inventory Turnover | — | — | — | — | — | — | 16.70 | 26.73 | 33.42 | 11.66 | 6.24 |
| Days Sales Outstanding | — | 96.77 | 115.36 | 93.33 | 94.17 | 80.89 | 94.15 | 77.91 | 70.18 | 82.35 | 68.73 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.2% | 0.8% | 0.0% | 3.2% | 1.4% | 0.6% | 0.4% | 0.4% | — | — | 23.8% |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.7% | 12.1% | 76.4% | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.2% | 0.8% | 0.0% | 3.2% | 1.4% | 0.6% | 0.4% | 0.4% | 0.0% | 0.0% | 23.8% |
| Shares Outstanding | — | $206M | $184M | $184M | $183M | $182M | $164M | $138M | $124M | $98M | $37M |
Includes 30+ ratios · 12 years · Updated daily
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Quick answers to the most common questions about buying GDS stock.
GDS Holdings Limited's current P/E ratio is 10.3x. The historical average is 4.8x. This places it at the 100th percentile of its historical range.
GDS Holdings Limited's current EV/EBITDA is 11.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.1x.
GDS Holdings Limited's return on equity (ROE) is 3.7%. The historical average is -4.9%.
Based on historical data, GDS Holdings Limited is trading at a P/E of 10.3x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
GDS Holdings Limited's current dividend yield is 0.18%.
GDS Holdings Limited has 22.6% gross margin and 13.4% operating margin. Operating margin between 10-20% is typical for established companies.
GDS Holdings Limited's Debt/EBITDA ratio is 9.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Chronic cash burn amid high leverage
Valuation Disconnect Between TTM and Forward Multiples
GDS trades at a forward EV/EBITDA of 1.44x, a dramatic discount to its trailing 14.69x, suggesting the market is pricing in a massive near-term EBITDA expansion that appears disconnected from recent operational performance.
The extreme divergence between trailing and forward multiples implies the market is either anticipating a significant profitability inflection or is using a non-standard forward estimate. Given the recent gross margin compression to 19.5% and volatile net income, this forward multiple warrants skepticism. Compared to global peers like Equinix (31.75x EV/EBITDA), GDS trades at a deep discount, which likely reflects a combination of China-specific regulatory risk and skepticism about the sustainability of its capital-intensive growth model.
Gross Margin Volatility Undermines Earning Power
GDS's gross margin swung from 33.6% in Q1 2026 to 19.5% in Q2 2026, a level significantly below global peers, indicating severe cost headwinds or an unfavorable revenue mix that obscures true operational earning power.
The dramatic quarterly swing in gross margin suggests the business is highly sensitive to factors like electricity pricing, facility utilization rates, and the timing of customer move-ins. The operating margin of 14.2% in the latest quarter, while positive, remains below the level typically required to generate sustainable returns on the massive capital invested. This volatility makes it difficult to assess the company's core profitability, as non-recurring items and accounting nuances frequently distort the net margin figure.
ROIC Remains Stubbornly Below Cost of Capital
GDS's ROIC has hovered between 0.3% and 1.1% over the past ten quarters, a level that appears to be well below its weighted average cost of capital, indicating the company is not yet creating value for equity holders.
The persistently low ROIC, despite revenue growth, suggests that the aggressive capital expenditure program has not yet translated into efficient returns. The driver is not margin expansion but rather the sheer scale of the asset base, as indicated by the low asset turnover of 0.04. For a company in a growth phase, this level of return on capital is concerning and implies that future profitability must improve dramatically to justify the current investment cycle.
High Leverage Constrains Financial Flexibility
Despite an improving D/E ratio of 1.43, GDS's absolute debt load of $47.4B and a D/EBITDA of 36.77x indicate that debt service remains a significant burden, especially with interest coverage at a thin 1.20x.
The high D/EBITDA multiple reveals that the company's earnings power is small relative to its debt, making it vulnerable to rising interest rates or operational setbacks. While the current ratio of 1.78 provides a short-term liquidity buffer, the underlying leverage profile suggests that refinancing risk is a material concern. The interest coverage ratio of 1.20x leaves very little margin for error, and any deterioration in EBITDA could quickly strain the company's ability to service its debt.
The Misleading Promise of Forward EV/EBITDA
The forward EV/EBITDA of 1.44x is the ratio most commonly misapplied to GDS, as it obscures the company's chronic cash burn and capital intensity by relying on optimistic, non-GAAP earnings forecasts.
This metric is often cited to suggest GDS is deeply undervalued, but it fails to account for the massive capital expenditures required to maintain and grow its data center footprint, which have resulted in negative free cash flow in eight of the last ten quarters. A more appropriate metric would be EV/Operating Cash Flow or a price-to-sales ratio adjusted for capital intensity, as these better reflect the cash-generative reality of the business. The forward multiple's optimism is not supported by the historical pattern of volatile and often negative net income.