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 stronger assessment of its value. The company appears to be undervalued, particularly when considering its PEG ratio of 0.18, which suggests significant growth potential relative to its price. Additionally, its P/E ratio stands at 41, which is higher than peers like FactSet Research Systems, Inc. at 28.40 and Akamai Technologies, Inc. at 22.51, but this is offset by a robust ROCE of 22.39% and an EV to EBITDA of 3.24, highlighting operational efficiency.
In terms of peer comparison, Kyndryl's valuation metrics are compelling, especially when juxtaposed with ExlService Holdings, Inc. (P/E of 31.10) and DXC Technology Co. (P/E of 5.42), which illustrates its competitive positioning within the industry. Despite recent stock performance showing a decline of 20.23% year-to-date compared to a 13.30% gain in the S&P 500, the long-term return of 217.61% over three years significantly outpaces the benchmark's 81.19%, reinforcing the potential for recovery and growth in Kyndryl's valuation.