Latest Ratios: P/E Ratio 10.8x · EV/EBITDA 2.8x · 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 | $3.6B | $3.1B | $7.5B | $5.0B | $3.3B | $2.9B | — | — |
| Enterprise Value | $5.9B | $5.4B | $9.7B | $7.6B | $5.7B | $5.3B | — | — |
| P/E Ratio → | 10.78 | 15.44 | 29.90 | — | — | — | — | — |
| P/S Ratio | 0.14 | 0.20 | 0.50 | 0.31 | 0.20 | 0.16 | — | — |
| P/B Ratio | 2.95 | 2.37 | 5.64 | 4.45 | 2.29 | 1.06 | — | — |
| P/FCF | 39.91 | 9.02 | 22.28 | — | — | — | — | — |
| P/OCF | 3.79 | 3.24 | 7.97 | 10.99 | 4.28 | — | — | — |
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 | 2.81 | 1.58 | 6.17 | 5.95 | 5.81 | 5.34 | — | — |
| EV / EBIT | 9.33 | 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 | 9.3% | 6.5% | 3.3% | — | — | — | — | — |
| FCF Yield | 2.5% | 11.1% | 4.5% | — | — | — | — | — |
| Buyback Yield | 11.1% | 13.0% | 1.8% | 0.4% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 11.1% | 13.0% | 1.8% | 0.4% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $234M | $239M | $229M | $227M | $224M | $224M | $224M |
Includes 30+ ratios · 7 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying KD stock.
Kyndryl Holdings, Inc.'s current P/E ratio is 10.8x. The historical average is 22.7x.
Kyndryl Holdings, Inc.'s current EV/EBITDA is 2.8x. 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 10.8x. 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
Leverage limiting earnings recovery flexibility
Metrics are mathematically derived from official filings.
Deep Discount Reflects Earnings Skepticism
Based on Kyndryl's reported figures, trailing P/E of 19.16 compresses to 9.35 forward and EV/EBITDA sits near 1.74, a discount that implies the market is pricing in persistent earnings quality doubts rather than a stable run rate.
The gap between trailing and forward P/E suggests consensus expects a substantial earnings recovery, yet the recent EPS shortfall of $0.27 against $0.77 expected warrants caution about how much of that recovery is priced credibly. Against peers such as Leidos at 11.92 P/E and SAIC at 19.00, Kyndryl trades at a lower multiple, which appears to reflect its flat revenue growth and 1.3% trailing net margin rather than a mispriced asset. Investors should monitor whether the forward multiple holds as quarterly results either confirm or contradict the margin recovery thesis.
Margins Stuck Below Peer Earning Power
As reported in financial statements, gross margin has stayed between 19.9% and 23.5% over ten quarters while operating margin ranged from 2.7% to 5.9%, leaving limited evidence of durable pricing power or operating leverage.
The stability of gross margin around 22% suggests that the legacy focus-account drag is absorbing the benefit of higher-margin consulting growth, consistent with management's description of a transition phase. Operating margins in the low single digits indicate that SG&A and restructuring costs consume most gross profit, which may indicate that reported earnings understate the underlying run rate or, alternatively, that cost structure is persistently heavy. Net margins that swung from -1.1% to 5.7% point to earnings driven by non-operating items rather than a steady operating base, which warrants further investigation.
Debt Load Constrains Financial Flexibility
Based on Kyndryl's reported figures, debt-to-equity of 4.16 and debt-to-EBITDA swinging between 4.21 and 33.03 indicate leverage that remains elevated relative to earnings capacity and limits room for error.
The debt-to-equity ratio has drifted from 3.00 in early 2026 to 4.16 currently, suggesting that equity erosion from losses is outpacing any deleveraging, which may indicate constrained refinancing options if earnings stay soft. Interest coverage ranging from 0.80 to 11.75 reflects how sensitive debt service comfort is to quarterly operating volatility. Investors should watch whether coverage stabilizes above a comfortable threshold as restructuring charges roll off, since current levels appear dependent on earnings timing.
Working Capital Timing Drives Cash Conversion
According to recent SEC filings, asset turnover ranging from 0.31 to 11.75 and swinging receivable timing indicate that working capital movements, not operating performance, are the dominant driver of Kyndryl's reported cash conversion.
The wide variance in asset turnover and days sales outstanding suggests collection and billing timing is lumpy across quarters, consistent with the signings-versus-revenue recognition dynamics in the Consult segment. A cash conversion cycle that cannot be cleanly computed from the reported data limits confidence in how much supplier financing or customer leverage is supporting the business. Analysts should treat quarterly efficiency gains with skepticism until they persist across multiple reporting periods.
Misapplied Gross Margin Obscures Mix Shift
Gross margin is most commonly misapplied to Kyndryl because the legacy focus-account runoff masks improving segment mix, and a blended figure may understate the earning power of the higher-margin consulting book.
Using consolidated gross margin as a proxy for pricing power conflates legacy contracts being deliberately exited with the newer advisory and hyperscaler work management is building. An alternative approach is to evaluate margin by segment or to track the proportion of revenue from focus accounts over time, which may reveal whether the mix shift is genuinely occurring. Without that decomposition, the stable 22% gross margin could either signal a stalled transition or a successful one masked by legacy drag, and the data supplied does not resolve which interpretation is correct.