Stock fact sheet · data as of
GDS Holdings Limited (GDS): fair value, margin of safety and Wheel Score
Ticker symbol GDS · Technology · Information Technology Services · China · ADR · Blend
GDS is an American depositary share (ADR): the US listing of GDS Holdings Limited, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is GDS undervalued?
At 23.37 (close of 5 Nov 2026), GDS trades 18% under the GLS average fair value of 28.51. 4 of the 6 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS scan; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
The 6 models disagree widely: Lynch gives 11.19 while Graham Growth gives 45.13. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for GDS, so the nightly engine files it under Blend (value score 72, growth score 54, out of 100).
Nine valuation models for GDS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 36.06 | +54% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 45.13 | +93% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 11.19 | -52% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 31.20 | +34% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 16.38 | -30% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 31.08 | +33% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -25.95 | -211% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 43.50 | +86% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - GDS passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 2.3 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC 1.3%, ROE 3.5%, ROA 1.2% - with debt at 1.77 times equity and negative free cash flow.
GDS Holdings Limited pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Service revenue 50%, Colocation services 45%, Managed service and others 5% (fiscal year FY2025).
Institutional ownership scores 7/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 1.3% |
|---|---|---|---|
| GLS Moat | 2.3 / 10 | ROE | 3.5% |
| Debt / equity | 1.77 | ROA | 1.2% |
| Free-cash-flow yield | -2.5% | Payout ratio | 0% |
| Institutions | 7 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 41: Weak
GDS scores 41 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 4, financially healthy - Piotroski 5/9 (under 6); and filter 5, can repay its debt - 10.6 years to repay its debt (over 3), and the parts are thin too - value good, premium good, moat weak, health fair, red flags strong, option trading good, stability good. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 73% on the near-the-money contracts 20-60 days out - above the 60% top of the sweet spot. It still passes the 25-80% filter, but the Wheel Score rewards it less because volatility this high usually comes with a reason. Chain open interest is 36,028 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 3.0M shares a day on a market cap of $4.6B, with a beta of 0.46 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Fails | 10.6 years to repay its debt (over 3) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Good | 18% below fair value | |
| Premium | Good | implied volatility 73% | |
| Moat | Weak | moat 2.3/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Good | 3,685 contracts a day, 36,028 open interest | |
| Stability | Good | beta 0.46, $4.6B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
GDS Holdings Limited reports earnings on 18 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Information Technology Services
The 12 companies below are the closest to GDS Holdings Limited by market cap within the Information Technology Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MAAS Maase Inc. | 11.15 | - | - | 13No options | $4.9B |
| APLD Applied Digital Corp. | 16.61 | - | - | 17Weak | $5.0B |
| NSIT Insight Enterprises, Inc. | 175.62 | 146.23 | -20% | 39Weak | $5.2B |
| PSN Parsons Corporation | 52.41 | 69.99 | +25% | 79Good | $5.5B |
| KD Kyndryl Holdings, Inc. | 16.84 | 86.24 | +80% | 81Good | $3.7B |
| INGM Ingram Micro Holding Corporation | 26.12 | 25.49 | -2% | 36Weak | $6.0B |
| SAIC Science Applications International Corporation | 150.45 | 174.46 | +14% | 45Weak | $6.3B |
| EXLS ExlService Holdings, Inc. | 43.12 | 44.55 | +3% | 70Good | $6.5B |
| G Genpact Limited | 40.78 | 69.18 | +41% | 87Prime | $6.9B |
| CIFR Cipher Mining Inc. | 6.50 | - | - | 13Weak | $3.0B |
| EPAM EPAM Systems, Inc. | 137.36 | 132.81 | -3% | 45Weak | $7.1B |
| DXC DXC Technology Company | 14.88 | 65.65 | +77% | 78Good | $2.3B |
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Start free See the Sunday ScanQuestions about GDS
Is GDS undervalued right now?
By the GLS models, moderately: at 23.37 the stock trades 18% below the average fair value of 28.51 (data as of 5 Nov 2026).
What is the Wheel Score of GDS and what does it mean?
GDS scores 41 out of 100 (Weak) - it fails Wheel Trade Filters 4, 5. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for GDS?
28.51 per share as of 5 Nov 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does GDS Holdings Limited report earnings next?
The next earnings report is due on 18 Nov 2026 (before the open), 13 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does GDS have listed options, and how liquid are they?
Yes. The nightly snapshot found 102 listed contracts with 36,028 open interest across all expiries and implied volatility of 73% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is GDS an ADR?
Yes. GDS is an American depositary share (ADR): the US listing of GDS Holdings Limited, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.