Key Highlights:
- GDS Holdings exhibits a low Return on Capital Employed (ROCE) at 1.8%, significantly trailing the industry average.
- Wall Street analysts predict a potential upside of 112.71% based on their average target price, but GuruFocus suggests a 13.26% downside relative to current valuations.
- The consensus among 17 brokerage firms rates GDS Holdings as "Outperform," signaling potential despite recent stock struggles.
GDS Holdings Ltd (GDS, Financial) has been under the spotlight, particularly due to its Return on Capital Employed (ROCE), which stands at a mere 1.8%. This figure is notably below the industry standard of 9.8%, raising questions about its potential as a multi-bagger stock. Even with a 135% increase in capital employed, the company's stock value has tumbled by 67% over a five-year period.
Wall Street Analysts Forecast
Analysts have set a varied one-year price target for GDS Holdings Ltd (GDS, Financial), averaging at $45.41. Projections range from a high of $62.90 to a low of $36.94, translating to a potential upside of 112.71% from the current price of $21.35. For investors seeking in-depth analysis, detailed estimates are accessible on the GDS Holdings Ltd (GDS) Forecast page.
The sentiment among brokerages is optimistic, with a consensus recommendation rating of 1.8 for GDS Holdings, suggesting an "Outperform" status. This rating is based on a scale where 1 indicates a Strong Buy and 5 represents a Sell.
GuruFocus Valuation Insight
Contrasting Wall Street's optimistic outlook, GuruFocus estimates the GF Value of GDS Holdings Ltd (GDS, Financial) to be $18.52 in one year's time. This valuation implies a potential downside of 13.26% from the current market price of $21.35. The GF Value is meticulously calculated, taking into account historical trading multiples, past growth, and future business performance forecasts. Investors can explore further data on the GDS Holdings Ltd (GDS) Summary page.
