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GDS HoldingsGDS -2.46%64 Debt-to-EBITDA is 6.43 as of Mar. 2026, which is 41% below its 10-year median of 10.85. GuruFocus rates GDS with a GF Score™ of 64/100 and a GF Value™ of $21.20 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,719 Software companies, GDS Holdings ranks worse than 91.8% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for GDS Holdings's Debt-to-EBITDA or its related term are showing as below:
GDS'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 7.83 Med: 10.85 Max: 29.94
Current: 8.61
During the past 12 years, the highest Debt-to-EBITDA Ratio of GDS Holdings was 29.94. The lowest was 7.83. And the median was 10.85.
GDS's Debt-to-EBITDA is ranked worse than 91.8% of 1719
companies
in the Software industry
Industry Median: 1.08
vs GDS: 8.61
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
GDS Holdings Debt-to-EBITDA Related Terms
GDS Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for GDS Holdings's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, GDS Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
GDS Holdings Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, GDS Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where GDS Holdings's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
GDS Holdings (GDS) has a Debt-to-EBITDA of 6.43 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on GDS Holdings. This is 41% below median its historical median of 10.85. Over the past decade, GDS Holdings' Debt-to-EBITDA has ranged from 7.83 to 29.94. According to the industry distribution chart, GDS Holdings ranks #1578 out of 1719 companies in the Software industry, placing it in the top 91.8%.
Is GDS Holdings' Debt-to-EBITDA too high?
GDS Holdings' current Debt-to-EBITDA of 6.43 is 41% below median its 10-year median of 10.85. Over the past 10 years, this metric has ranged from a low of 7.83 to a high of 29.94. The Software industry median Debt-to-EBITDA is 1.08. GDS Holdings' value of 6.43 is 495.4% above this industry median. Based on the distribution chart, GDS Holdings ranks #1578 out of 1719 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, GDS Holdings has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GDS Holdings' Debt-to-EBITDA compare to PSN and INGM?
According to the Software industry distribution chart, GDS Holdings ranks #1578 out of 1719 companies for Debt-to-EBITDA. This places GDS Holdings in the lower half of its industry. The industry median Debt-to-EBITDA is 1.08. GDS Holdings' value of 6.43 is 495.4% above this benchmark. Historically, GDS Holdings' own Debt-to-EBITDA has ranged from 7.83 to 29.94 over the past decade. While the company's 10-year median is 10.85 vs. the industry median of 1.08, GDS Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.08, based on 1,719 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GDS Holdings's current Debt-to-EBITDA of 6.43 is 495.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on GDS Holdings. For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GDS Holdings's current Debt-to-EBITDA is 6.43, which is 41% below median its own 10-year median of 10.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GDS Holdings stock overvalued right now?
Based on GuruFocus' analysis, GDS Holdings (GDS) is currently considered Significantly Overvalued. The stock's GF Value™ is $21.20, compared to a current price of $31.72 — trading 49.6% above its estimated fair value. The current Debt-to-EBITDA is 6.43, which is 41% below median its 10-year median of 10.85 and 495.4% above the Software industry median of 1.08. GDS Holdings' overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For GDS Holdings (GDS), the current Debt-to-EBITDA is 6.43 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is GDS Holdings (GDS) Overvalued in 2026?
Based on GuruFocus' analysis, GDS Holdings stock appears to be overvalued.
The current stock price of $31.72 is trading 49.6% above its estimated GF Value™ of $21.20.
GuruFocus considers GDS Holdings to be Significantly Overvalued.
Key valuation signals for GDS:
Debt-to-EBITDA: 6.43 (41% below median its 10-year median of 10.85)
GF Value™: $21.20 vs. price of $31.72 (49.6% above fair value)
Industry Position: 495.4% above the Software median (#1578 of 1719)
No single metric tells the full story. See the GDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GDS Holdings started as an IT service provider in 2001, then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates, and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. Its data centers are located predominantly in and around the Tier 1 cities in China, and it has also started expanding into Southeast Asia via the now 23% owned DayOne. GDS listed on the Nasdaq in 2016 and completed a secondary listing in Hong Kong in 2020.
64GF Score
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