Latest Ratios: P/E Ratio 14.2x · EV/EBITDA 1.5x · ROE 15.1%. (2020–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.7B | $3.1B | $7.5B | $5.0B | $3.3B | $2.9B | — | — |
| Enterprise Value | $5.0B | $5.4B | $9.7B | $7.6B | $5.7B | $5.3B | — | — |
| P/E Ratio → | 14.19 | 15.44 | 29.90 | — | — | — | — | — |
| P/S Ratio | 0.18 | 0.20 | 0.50 | 0.31 | 0.20 | 0.16 | — | — |
| P/B Ratio | 2.18 | 2.37 | 5.64 | 4.45 | 2.29 | 1.06 | — | — |
| P/FCF | 7.82 | 9.02 | 22.28 | — | — | — | — | — |
| P/OCF | 2.81 | 3.24 | 7.97 | 10.99 | 7.37 | — | — | — |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.36 | 0.64 | 0.47 | 0.34 | 0.28 | — | — |
| EV / EBITDA | 1.46 | 1.58 | 6.17 | 5.95 | 5.81 | 5.34 | — | — |
| EV / EBIT | 7.86 | 10.74 | 18.09 | — | — | — | — | — |
| EV / FCF | — | 15.88 | 28.72 | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 21.8% | 21.8% | 20.9% | 17.8% | 14.8% | 11.3% | 11.3% | 12.8% |
| Operating Margin | 4.2% | 4.2% | 3.7% | 0.6% | -2.3% | -3.6% | -3.6% | -3.1% |
| Net Profit Margin | 1.3% | 1.3% | 1.7% | -2.1% | -8.1% | -12.3% | -12.3% | -4.7% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| ROE | 15.1% | 15.1% | 20.5% | -26.3% | -65.0% | -83.2% | -52.9% | -15.9% |
| ROA | 1.7% | 1.7% | 2.4% | -3.1% | -11.1% | -17.4% | -18.5% | -8.0% |
| ROIC | 13.4% | 13.4% | 11.5% | 1.8% | -6.4% | -9.8% | -8.1% | -6.5% |
| ROCE | 10.2% | 10.2% | 9.1% | 1.4% | -5.0% | -7.6% | -7.8% | -7.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.84 | 3.84 | 2.97 | 3.69 | 2.90 | 1.66 | 1.66 | 0.23 |
| Debt / EBITDA | 1.45 | 1.45 | 2.52 | 3.26 | 4.30 | 4.62 | 4.62 | 1.57 |
| Net Debt / Equity | — | 1.81 | 1.63 | 2.31 | 1.64 | 0.86 | 0.86 | 0.22 |
| Net Debt / EBITDA | 0.68 | 0.68 | 1.38 | 2.04 | 2.43 | 2.39 | 2.39 | 1.53 |
| Debt / FCF | — | 6.86 | 6.44 | — | — | — | — | — |
| Interest Coverage | 5.65 | 5.65 | 5.35 | -0.38 | -8.05 | -28.73 | -28.73 | -6.88 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.88 | 0.88 | 1.07 | 1.03 | 1.02 | 1.30 | 1.30 | 0.92 |
| Quick Ratio | 0.88 | 0.88 | 1.07 | 1.03 | 1.02 | 1.30 | 1.30 | 0.92 |
| Cash Ratio | 0.42 | 0.42 | 0.42 | 0.34 | 0.38 | 0.50 | 0.50 | 0.01 |
| Asset Turnover | — | 1.20 | 1.44 | 1.52 | 1.49 | 1.41 | 1.41 | 1.73 |
| Inventory Turnover | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 31.44 | 32.60 | 36.36 | 32.65 | 44.59 | 44.59 | 32.22 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.0% | 6.5% | 3.3% | — | — | — | — | — |
| FCF Yield | 12.8% | 11.1% | 4.5% | — | — | — | — | — |
| Buyback Yield | 15.0% | 13.0% | 1.8% | 0.4% | 0.7% | 0.0% | — | — |
| Total Shareholder Yield | 15.0% | 13.0% | 1.8% | 0.4% | 0.7% | 0.0% | — | — |
| Shares Outstanding | — | $234M | $239M | $229M | $227M | $224M | $224M | $224M |
Includes 30+ ratios · 7 years · Updated daily
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Quick answers to the most common questions about buying KD stock.
Kyndryl Holdings, Inc.'s current P/E ratio is 14.2x. The historical average is 22.7x.
Kyndryl Holdings, Inc.'s current EV/EBITDA is 1.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.0x.
Kyndryl Holdings, Inc.'s return on equity (ROE) is 15.1%. The historical average is -29.7%.
Based on historical data, Kyndryl Holdings, Inc. is trading at a P/E of 14.2x. Compare with industry peers and growth rates for a complete picture.
Kyndryl Holdings, Inc. has 21.8% gross margin and 4.2% operating margin.
Kyndryl Holdings, Inc.'s Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
High leverage and negative equity
Metrics are mathematically derived from official filings.
Deep Discount Masks Transformation Optionality
Kyndryl trades at 0.19x sales and 1.54x EV/EBITDA, a steep discount to peers like DXC (3.0x EV/EBITDA) and Leidos (9.5x), implying the market prices in minimal earnings recovery.
The forward P/E of 7.56 suggests the market expects a sharp earnings rebound, but the trailing P/E of 15.49 reflects current suppressed profitability. The EV/EBITDA multiple of 1.54 is far below the sector average, indicating skepticism about the durability of EBITDA given recurring restructuring charges. Investors should monitor whether the discount narrows as focus accounts roll off and Consult revenue scales.
Margin Stagnation Despite Mix Shift
Gross margin has hovered near 22% for ten quarters, with operating margin at 2.7% in 2027Q1, below the 5.9% peak in 2025Q4, suggesting limited progress in structural margin improvement.
The stable gross margin around 22% indicates that the mix shift toward higher-margin Consult work is not yet visible at the gross level. Operating margin volatility, swinging from -1.3% to 5.9%, reflects the impact of restructuring charges and focus account runoff. Net margin of 1.3% in 2027Q1 is artificially suppressed by separation costs, but the trend suggests the underlying earning power remains thin.
ROIC Recovery Still Nascent
ROIC improved to 8.2% in 2027Q1 from negative levels in 2024Q4, but remains below the cost of capital, indicating that value creation is not yet sustainable.
The jump in ROIC to 8.2% in 2027Q1 is driven by a spike in asset turnover (1.23x) that appears anomalous given the historical range of 0.32-0.38x. ROE of 16.1% in the same quarter is similarly inflated by a thin equity base, which amplifies volatility. Excluding the outlier quarter, ROIC has averaged around 3%, suggesting that the company is not yet compounding returns on invested capital.
Working Capital Swings Distort Cash Conversion
DSO improved to 8 days in 2027Q1 from 32 days a year earlier, but the cash conversion cycle remains negative due to negative DPO, indicating aggressive supplier payment terms.
The dramatic drop in DSO to 8 days in 2027Q1 is likely a timing artifact, as historical DSO has been in the low 30s. The negative DPO (e.g., -9 days) suggests Kyndryl pays suppliers faster than it collects from customers, which is unusual for a services firm and may reflect contract terms or vendor financing. This working capital volatility explains the wide swings in free cash flow, which was negative in five of the last ten quarters.
Leverage Creeps Higher as Equity Cushion Thins
Debt-to-equity rose to 4.22 in 2027Q1 from 2.97 a year earlier, with interest coverage at 5.65x, but the thin equity base of $1.1B leaves little room for further losses.
The D/E ratio of 4.22 is far above peers like DXC (1.32) and Leidos (1.19), indicating a strained balance sheet. Interest coverage of 5.65x appears adequate, but it is volatile, having been as low as 0.23x in 2024Q4. With retained earnings deeply negative at -$1.9B, a further $1B loss could push equity negative, potentially triggering debt covenants.
Liquidity Buffer Thin and Deteriorating
Current ratio fell to 0.85 in 2027Q1 from 1.07 a year earlier, while cash dropped to $2.1B, indicating a weakened ability to cover short-term obligations.
The current ratio below 1.0 suggests that Kyndryl may struggle to meet short-term liabilities without refinancing or asset sales. The quick ratio is identical to the current ratio, indicating minimal inventory, which is typical for a services firm. However, the negative working capital trend, with working capital changes of -$916M in 2027Q1, highlights the cash absorption from operations, which could strain liquidity if the capital markets tighten.
Misapplied EV/EBITDA Multiple
The EV/EBITDA multiple of 1.54 is misleading for Kyndryl because EBITDA is inflated by non-cash charges and excludes the cash costs of restructuring, understating true leverage.
Analysts often use EV/EBITDA to compare Kyndryl with asset-light IT services peers, but this ignores the company's heavy restructuring charges and pension obligations, which are not captured in EBITDA. A more appropriate metric is EV/EBIT or EV/EBITDAR, which would better reflect the cash earnings power. Additionally, the negative working capital cycle and high debt load suggest that EV/EBITDA understates the financial risk, making the stock appear cheaper than it is.