Kyndryl Holdings Inc
NYSE:KD

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Kyndryl Holdings Inc
NYSE:KD
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Price: 13.46 USD -0.96% Market Closed
Market Cap: $3B

EV/FCFF

13.4
Current
233%
Cheaper
vs 3-y average of -10.1

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
13.4
=
Enterprise Value
$3.9B
/
Free Cash Flow to Firm
$297m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
13.4
=
Enterprise Value
$3.9B
/
Free Cash Flow to Firm
$297m

Valuation Scenarios

Kyndryl Holdings Inc is trading below its industry average

If EV/FCFF returns to its Industry Average (24), the stock would be worth $24.03 (79% upside from current price).

Statistics
Positive Scenarios
2/2
Maximum Downside
No Downside Scenarios
Maximum Upside
+79%
Average Upside
76%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 13.4 $13.46
0%
Industry Average 24 $24.03
+79%
Country Average 23.2 $23.27
+73%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
US
Kyndryl Holdings Inc
NYSE:KD
3B USD 13.4 12.2
US
International Business Machines Corp
NYSE:IBM
218.6B USD 21.6 20.3
JP
BrainPad Inc
TSE:3655
20.9T JPY 82.2 551.4
IE
Accenture PLC
NYSE:ACN
109.3B USD 8.4 14.3
IN
Tata Consultancy Services Ltd
NSE:TCS
8.8T INR 18.3 18.7
IN
Infosys Ltd
NSE:INFY
4.7T INR 14.4 17.1
JP
Fujitsu Ltd
TSE:6702
6.5T JPY 21.2 13.6
JP
NEC Corp
TSE:6701
5.9T JPY 19.2 24.1
JP
NTT Data Group Corp
DUS:NT5
30.3B EUR -31.7 38.8
IN
HCL Technologies Ltd
NSE:HCLTECH
3.2T INR 16 20
JP
NTT Data Corp
TSE:9613
5.6T JPY -31.9 39.1

Market Distribution

Lower than 76% of companies in the United States of America
Percentile
24rd
Based on 8 393 companies
24rd percentile
13.4
Low
0 — 15.4
Typical Range
15.4 — 35.1
High
35.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 15.4
Median 23.2
70th Percentile 35.1
Max 3 178 983.5

Kyndryl Holdings Inc
Glance View

Kyndryl Holdings Inc., a name that might sound unfamiliar to some, was born from one of the most significant corporate separations in recent history. Spun off from IBM in November 2021, Kyndryl took on the task of managing the vast IT infrastructure services that Big Blue had cultivated over decades. This separation allowed Kyndryl to direct its focus squarely on advancing IT services across cloud-based solutions, networking, hosting, and customer data centers. The company's operations primarily revolve around designing, building, and managing critical information systems. Its business model leverages ongoing engagements with large organizations, providing essential services such as disaster recovery, security, and systems management, ensuring that clients' digital transformations are seamless and secure. Kyndryl's revenue stream is firmly anchored in its partnerships and contractual agreements with a diverse array of industries, including financial services, telecoms, retail, and healthcare. By committing to long-term contracts, the company ensures a steady flow of income and builds deep relationships with its clients, who rely on its expertise to keep their IT infrastructure running smoothly. This model allows Kyndryl to customize solutions that specifically address the strategic needs of each client, thereby creating value not only through operational efficiency but also through innovative technology deployment tailored to meet the evolving business landscape. The firm’s ability to adapt and grow alongside its partners underscores its core strength, positioning Kyndryl as a pivotal player in the IT services domain, with a clear vision for both its operational execution and future growth trajectory.

KD Intrinsic Value
54.7 USD
Undervaluation 75%
Intrinsic Value
Price $13.46
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