Is Kyndryl Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Kyndryl Holdings, Inc. has moved from attractive to very attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued based on its current metrics, with a P/E ratio of 41, a Price to Book Value of 7.62, and an EV to EBITDA of 3.24. In comparison to peers, Kyndryl's P/E ratio is significantly higher than FactSet Research Systems, Inc. at 28.40 and Akamai Technologies, Inc. at 22.51, suggesting a relative undervaluation in the context of its performance.
Despite recent stock performance showing a decline of 20.23% year-to-date compared to a 13.30% increase in the S&P 500, Kyndryl's strong return of 217.61% over the past three years highlights its potential for growth. This combination of favorable valuation ratios and historical performance supports the conclusion that Kyndryl Holdings, Inc. is currently undervalued.