Market Pulse44Neutral

Kyndryl Holdings, Inc.Opportunity Rank #156(KD) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$12.15

Last updated: Jul 20, 2026

Price vs Intrinsic Value

$12.15
Price
$44.01
Intrinsic Value
Undervalued by 262%MOS: $35.21

Fundamental Score

53/100
Neutral

Weighted across 6 signals

Narrative Score

51/100
Weak

No change vs previous

Trend Score

32/100
Weak

As of 2026-07-17

The intrinsic value of Kyndryl Holdings, Inc. (KD) is estimated at $44.01 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $12.15, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a -6.15% long-term growth rate and a 10.00% discount rate (calculated: 5.86%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Kyndryl Holdings, Inc. (KD) is estimated at $44.01 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $12.15, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a -6.15% long-term growth rate and a 10.00% discount rate (calculated: 5.86%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$44.01
▲ 262.22% upside
20% margin of safety: $35.21
Years: 10Growth Rate: -6.15%
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Capital Efficiency

Average Quarterly ROIC
1.85%
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

53/100
NeutralWeighted across 6 signals
DCF Discount
262.2% discount to price
100
FCF Yield
58.0% trailing FCF yield
100
ROIC vs WACC
ROIC 1.9% vs WACC 11.0% (0.2x)
8
Net Debt / FCF
0.9x net debt to FCF
81
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
-0.7% 5Y FCF CAGR (adjusted)
0
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, FCF CAGR (5Y).

Narrative Details

51/100
Weak
Vs 6-Month Baseline:Average (51st pct)Weighted across 6 recent drivers
Trend: StableConfidence: 74%Updated: 2d ago
Sources: 27 (25 News · 2 Analyst)
Drivers(last 30 days)
3 legal risk-0.1
3 regulatory scrutiny+0.1
Upgrade headlines+0.1
18 news sentiment+0.1
Analyst downgrades-0.0
Analyst reiterations0.0

Trend Details

32/100
WeakAs of 2026-07-17310 daily bars used
Distance from 52-Week High-69.2%
6M Relative Strength vs SPY-63.5%
3M Relative Strength vs SPY-18.8%
Price vs 21 EMA65 · +2.5%
Price vs 50 EMA50 · -0.0%
21 EMA vs 50 EMA31 · -2.4%
3M RS vs SPY4 · -18.8%
6M RS vs SPY0 · -63.5%
Distance from 52W High0 · -69.2%

Investment Coach

Updating... 38d ago
WATCHConfidence: 48%
Thesis
Kyndryl Holdings, Inc. is significantly undervalued with an estimated fair value 280% above its current price and a strong free cash flow yield of 62.9%. However, its returns are currently trailing the estimated cost of capital, indicating operational challenges.
Key Risk
The key risk is the company's return on invested capital (ROIC) remaining substantially below its weighted average cost of capital (WACC), which could impair value creation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: -6.15%5 Year CAGR (Adjusted): -0.69%

Free Cash Flow (in millions)

TTM2025202420232021202020192018
$1,555$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. functions as a global technology and IT infrastructure services specialist. The firm delivers a comprehensive portfolio of IT solutions, encompassing cloud computing, foundational enterprise platforms, application development, data analytics, and artificial intelligence capabilities. Additionally, Kyndryl provides services related to modern digital workplaces, robust security and resiliency, alongside advanced network and edge computing solutions. It caters to a diverse clientele across various sectors such as finance, telecommunications, retail, automotive, and logistics. Established in 2020, its corporate headquarters are situated in New York, New York.