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 strong improvement in its valuation outlook. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 41, a PEG ratio of 0.18, and an EV to EBITDA ratio of 3.24, which suggest that the stock may be trading below its intrinsic value relative to its growth prospects.
In comparison to its peers, Kyndryl's P/E ratio is higher than that of FactSet Research Systems, Inc. at 28.40 and Akamai Technologies, Inc. at 22.51, but its PEG ratio is significantly lower than both, indicating better growth potential at a lower price. Notably, Kyndryl has outperformed the S&P 500 over the 3-year period with a return of 217.61% compared to the index's 81.19%, reinforcing the notion of its undervaluation relative to its growth trajectory.