Market Pulse59Neutral

Kyndryl Holdings, Inc.Opportunity Rank #193(KD) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$12.64

Last updated: May 08, 2026

Price vs Intrinsic Value

$12.64
Price
$44.21
Intrinsic Value
Undervalued by 250%MOS: $35.37

Fundamental Score

56/100
Neutral

Weighted across 6 signals

Narrative Score

46/100
Weak

No change vs previous

Trend Score

10/100
Weak

As of 2026-05-08

The intrinsic value of Kyndryl Holdings, Inc. (KD) is estimated at $44.21 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $12.64, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a -7.73% long-term growth rate and an 11.49% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Kyndryl Holdings, Inc. (KD) is estimated at $44.21 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $12.64, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a -7.73% long-term growth rate and an 11.49% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$44.21
▲ 249.76% upside
20% margin of safety: $35.37
Years: 10Growth Rate: -7.73%
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Capital Efficiency

Average Quarterly ROIC
2.72%
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

56/100
NeutralWeighted across 6 signals
DCF Discount
249.8% discount to price
100
FCF Yield
45.2% trailing FCF yield
100
ROIC vs WACC
ROIC 2.7% vs WACC 11.0% (0.2x)
12
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
-6.5% 5Y FCF CAGR (adjusted)
0
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, FCF CAGR (5Y).

Narrative Details

46/100
Weak
Vs 6-Month Baseline:Average (46th pct)Weighted across 6 recent drivers
Trend: Deteriorating downConfidence: 100%Updated: 17h ago
Sources: 203 (200 News · 3 Analyst)
Drivers(last 30 days)
2 layoffs-0.2
23 news sentiment-0.2
9 regulatory scrutiny-0.2
165 legal risk+0.1
Upgrade headlines+0.1
Analyst downgrades-0.0

Trend Details

10/100
WeakAs of 2026-05-08311 daily bars used
Distance from 52-Week High-71.8%
3M Relative Strength vs SPY-54.6%
6M Relative Strength vs SPY-62.0%
Price vs 21 EMA8 · -9.3%
Price vs 50 EMA5 · -14.1%
21 EMA vs 50 EMA14 · -5.2%
3M RS vs SPY0 · -54.6%
6M RS vs SPY0 · -62.0%
Distance from 52W High0 · -71.8%

Investment Coach

Updating... 1d ago
BUYConfidence: 57%
Thesis
Kyndryl Holdings, Inc. is significantly undervalued with an estimated fair value 198% above its current price, supported by strong free cash flow yield and constructive fundamentals. Despite trailing returns relative to its cost of capital, the company's valuation and buyback activity present a compelling buy opportunity.
Key Risk
The company's return on invested capital remains well below its weighted average cost of capital, indicating potential ongoing value destruction.
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: -7.73%5 Year CAGR (Adjusted): -2.69%

Free Cash Flow (in millions)

TTM2025202420232021202020192018
$1,288$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. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and cloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, telecommunications, retail, automobile, and transportation industries. The company was incorporated in 2020 and is headquartered in New York, New York.