Stock fact sheet · data as of
Kyndryl Holdings, Inc. (KD): fair value, margin of safety and Wheel Score
Technology · Information Technology Services · United States · Value
Is KD undervalued?
At 13.19 (close of 16 Oct 2026), KD trades 85% below the GLS average fair value of 90.61. That average comes from 8 models run on the latest filings, and 7 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Kyndryl Holdings, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
There is a wide gap between Graham Number (12.53) and DCF (507.43). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files KD under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for KD
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 | 507.43 | +3747% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 12.53 | -5% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 55.35 | +320% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 21.98 | +67% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 29.32 | +122% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 63.52 | +382% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 18.18 | +38% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 16.55 | +25% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -26.31 | -299% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 14.67 | +11% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Kyndryl Holdings, Inc. scores 8 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability KD scores 6.1/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are thin or negative - ROIC 3.2%, ROE 16.9%, ROA 1.6% - with debt at 4.22 times equity and a free-cash-flow yield of 5.2%. Debt of 4.22 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
Kyndryl Holdings, Inc. 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 Principal Markets 35%, United States 26%, Strategic Markets 24% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 3.2% |
|---|---|---|---|
| GLS Moat | 6.1 / 10 | ROE | 16.9% |
| Debt / equity | 4.22 | ROA | 1.6% |
| Free-cash-flow yield | 5.2% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 87: Prime
With a Wheel Score of 87, Kyndryl Holdings, Inc. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 18/20, Moat 9/15, Premium 19/20, Stability 16/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 65% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (19 of 20) because volatility this high usually comes with a reason. Chain open interest is 49,608 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 5.3M shares a day on a market cap of $2.9B, with a beta of 1.73 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 85% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 9 / 15 | moat 6.1/10 | |
| Premium | 19 / 20 | implied volatility 65% | |
| Stability | 16 / 20 | 5.3M shares/day, $2.9B cap, beta 1.73 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Nov 2026 (before the open), 18 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
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 Kyndryl Holdings, Inc. 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 |
|---|---|---|---|---|---|
| DXC DXC Technology Company | 13.79 | 69.49 | +80% | 76Good | $2.2B |
| CIFR Cipher Mining Inc. | 10.04 | - | - | 36Weak | $4.2B |
| INOD Innodata Inc. | 56.57 | 57.61 | +2% | 53Fair | $1.9B |
| PSN Parsons Corporation | 42.79 | 64.83 | +34% | 81Prime | $4.6B |
| NSIT Insight Enterprises, Inc. | 158.90 | 146.13 | -9% | 63Fair | $4.7B |
| GLOB Globant S.A. | 39.23 | 72.41 | +46% | 82Prime | $1.7B |
| CNXC Concentrix Corporation | 27.67 | 190.69 | +85% | 45Weak | $1.7B |
| GDS GDS Holdings Limited | 25.32 | 33.66 | +25% | 73Good | $4.9B |
| EFOR Everforth, Inc. | 39.52 | 75.02 | +47% | 70Good | $1.6B |
| KEEL Keel Infrastructure Corp. | 2.57 | - | - | 39Weak | $1.6B |
| MAAS Maase Inc. | 12.61 | 18.74 | +33% | 39No options | $5.5B |
| SAIC Science Applications International Corporation | 131.57 | 171.60 | +23% | 81Prime | $5.5B |
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Start free See the Sunday ScanQuestions about KD
Is KD undervalued right now?
By the GLS models, yes: at 13.19 the stock is 85% below the average fair value of 90.61 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of KD and what does it mean?
KD scores 87 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for KD?
90.61 per share as of 16 Oct 2026 - the simple average of the 8 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 Kyndryl Holdings, Inc. report earnings next?
The next earnings report is due on 3 Nov 2026 (before the open), 18 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does KD have listed options, and how liquid are they?
Yes. The nightly snapshot found 318 listed contracts with 49,608 open interest across all expiries and implied volatility of 65% 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.