Is Kyndryl Holdings, Inc. overvalued or undervalued?

As of 20 June 2025, Kyndryl Holdings, Inc. has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued, with a P/E ratio of 41, a Price to Book Value of 7.62, and an EV to EBITDA of 3.24. These ratios suggest that the market may not be fully recognizing the company's potential, especially when compared to peers like ExlService Holdings, Inc., which has a P/E of 37.17, and DXC Technology Co., with a significantly lower P/E of 5.88.
Kyndryl's PEG ratio stands at an impressive 0.18, indicating strong growth potential relative to its valuation. Additionally, the company's ROCE of 22.39% and ROE of 18.78% further highlight its operational efficiency and profitability. Notably, Kyndryl has outperformed the S&P 500 over the past year, with a return of 54.04% compared to the index's 10.26%, reinforcing the notion that the stock is undervalued in the current market environment.