Grid Dynamics Holdings, Inc. (GDYN)
Valuation Overview•Is Grid Dynamics Holdings, Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 54/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
GDYN struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($325M) and minimal debt risk.
The company demonstrates solid revenue growth (9.9% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-0.5%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $104.1M | +17.5% | +9.9% | +29.9% | — | |
| EBITDA | -$3.7M | — | — | — | — | |
| Net Income | -$1.5M | +139.2% | — | — | — | |
| EPS (Diluted) | $-0.02 | +117.8% | — | — | — | |
| Free Cash Flow | $4.4M | +37.1% | -0.4% | +47.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 34.1% | 35.7% | 37.5% | 39.0% |
| Operating Margin | -0.5% | -0.6% | -1.7% | 2.7% |
| Net Margin | 1.3% | 1.0% | -2.0% | 1.8% |
| FCF Margin | 5.7% | 7.3% | 7.3% | 7.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.08 | $0.09 | +12.5% | ||
| Q1'26 | $0.09 | $0.10 | +11.1% | ||
| Q4'25 | $0.09 | $0.09 | +0.0% | ||
| Q3'25 | $0.10 | $0.10 | +0.0% | ||
| Q2'25 | $0.09 | $0.11 | +22.2% | ||
| Q1'25 | $0.10 | $0.12 | +20.0% | ||
| Q4'24 | $0.10 | $0.10 | +0.0% | ||
| Q3'24 | $0.07 | $0.08 | +14.3% |
Total return is -54.2% (1Y), lagging the benchmark by -75.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -38.7% | -46.1% | — |
| 1Y | -54.2% | -75.1% | — |
| 3YCAGR | -15.5% | -34.4% | — |
| 5YCAGR | -22.1% | -33.2% | — |
| 10YCAGR | -5.5% | -19.1% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Grid Dynamics Holdings, Inc. (GDYN) valuation, health, and returns.
Based on peer relative multiples, Grid Dynamics Holdings, Inc. appears Expensive versus peers compared to industry peers.
Grid Dynamics Holdings, Inc. has multiple valuation anchors: Peer Relative Fair Value: $3.76 | Wall Street Analyst Target: $9.33 (implying +70.6% upside). A convergence of these signals offers higher conviction.
Grid Dynamics Holdings, Inc. displays fair financial health with a composite quality score of 54/100, supported by a Altman Z-Score of 5.4 (safe zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 0.8%.
Grid Dynamics Holdings, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Grid Dynamics Holdings, Inc.'s current growth trajectory is Accelerating. The company achieved +17.5% 1Y revenue growth and +117.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +9.9%.
Wall Street consensus is Buy based on 9 analysts, beating EPS expectations in 50% of recent quarters with a 2-quarter streak. The consensus price target represents a +70.6% change from current levels.
Investment risks for Grid Dynamics Holdings, Inc. include: -58.0% 1-year max drawdown, high beta (1.59x market volatility). Volatility risk is characterized by a beta of 1.59x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.