Market Pulse50Neutral

Kyndryl Holdings, Inc.Opportunity Rank #199(KD) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$12.95

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$12.95
Price
$21.89
Intrinsic Value
Undervalued by 69%MOS: $17.51

Fundamental Score

48/100
Bearish

Weighted across 6 signals

Narrative Score

53/100
Weak

+2 vs previous

The intrinsic value of Kyndryl Holdings, Inc. (KD) is estimated at $21.89 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $12.95, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a -7.73% long-term growth rate and a 10.00% discount rate (calculated: 6.47%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Kyndryl Holdings, Inc. (KD) is estimated at $21.89 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $12.95, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a -7.73% long-term growth rate and a 10.00% discount rate (calculated: 6.47%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$21.89
▲ 69.03% upside
20% margin of safety: $17.51
Years: 10Growth Rate: -7.73%
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Capital Efficiency

Average Quarterly ROIC
3.28%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

48/100
BearishWeighted across 6 signals
DCF Discount
69.0% discount to price
100
FCF Yield
43.4% trailing FCF yield
100
ROIC vs WACC
ROIC 3.3% vs WACC 11.0% (0.3x)
15
Net Debt / FCF
2.7x net debt to FCF
8
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
-6.5% 5Y FCF CAGR (adjusted)
0
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

53/100
Weak
+2 vs previousVs 6-Month Baseline:Above Avg (80th pct)Weighted across 5 recent drivers
Trend: Improving upConfidence: 100%Updated: 1h ago
Sources: 203 (200 News · 3 Analyst)
Drivers(last 30 days)
8 regulatory scrutiny+0.4
183 legal risk-0.1
9 news sentiment+0.1
Analyst downgrades-0.0
2 analyst reiterations0.0

Investment Coach

Updated 19h ago
AVOIDConfidence: 62%
Thesis
Kyndryl Holdings, Inc. currently exhibits weak fundamentals with returns trailing its cost of capital despite a healthy free cash flow yield of 43.4%, and its valuation is near fair value suggesting patience is warranted. The company's narrative score is improving, indicating potential positive shifts ahead.
Key Risk
The primary risk is the sustained negative spread between ROIC and WACC, which undermines value creation.
Signals To Watch
  • Price moving to at least a mid-teens discount to fair value.
  • Improvement in ROIC versus WACC spread.
  • Meaningful shifts in the narrative trend and score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: -7.73%5 Year CAGR (Adjusted): -2.69%

Free Cash Flow (in millions)

TTM2025202420232021202020192018
$1,288$1,547$1,105$1,105$633$1,664$2,324$2,237

How Intrinziq Estimates Fair Value

Intrinziq estimates Kyndryl Holdings, Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Kyndryl Holdings, Inc.Technology

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and cloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, telecommunications, retail, automobile, and transportation industries. The company was incorporated in 2020 and is headquartered in New York, New York.