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Kyndryl HoldingsKD +0.58%54 Debt-to-EBITDA is 2.94 as of Mar. 2026, which is 13% below its 10-year median of 3.39. GuruFocus rates KD with a GF Score™ of 54/100 and a GF Value™ of $23.64 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,716 Software companies, Kyndryl Holdings ranks worse than 76.34% 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 Kyndryl Holdings's Debt-to-EBITDA or its related term are showing as below:
KD'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.96 Med: 3.39 Max: 6.93
Current: 3.14
During the past 8 years, the highest Debt-to-EBITDA Ratio of Kyndryl Holdings was 6.93. The lowest was 0.96. And the median was 3.39.
KD's Debt-to-EBITDA is ranked worse than 76.34% of 1716
companies
in the Software industry
Industry Median: 1.085
vs KD: 3.14
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.
Kyndryl Holdings Debt-to-EBITDA Related Terms
Kyndryl Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Kyndryl 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, Kyndryl 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.
Kyndryl Holdings Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Kyndryl Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Kyndryl 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.
Kyndryl Holdings (KD) has a Debt-to-EBITDA of 2.94 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 Kyndryl Holdings. This is 13% below median its historical median of 3.39. Over the past decade, Kyndryl Holdings' Debt-to-EBITDA has ranged from 0.96 to 6.93. According to the industry distribution chart, Kyndryl Holdings ranks #1310 out of 1716 companies in the Software industry, placing it in the top 76.3%.
Is Kyndryl Holdings' Debt-to-EBITDA too high?
Kyndryl Holdings' current Debt-to-EBITDA of 2.94 is 13% below median its 10-year median of 3.39. Over the past 10 years, this metric has ranged from a low of 0.96 to a high of 6.93. The Software industry median Debt-to-EBITDA is 1.09. Kyndryl Holdings' value of 2.94 is 171% above this industry median. Based on the distribution chart, Kyndryl Holdings ranks #1310 out of 1716 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Kyndryl Holdings has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Kyndryl Holdings' Debt-to-EBITDA compare to INOD and VNET?
According to the Software industry distribution chart, Kyndryl Holdings ranks #1310 out of 1716 companies for Debt-to-EBITDA. This places Kyndryl Holdings in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. Kyndryl Holdings' value of 2.94 is 171% above this benchmark. Historically, Kyndryl Holdings' own Debt-to-EBITDA has ranged from 0.96 to 6.93 over the past decade. While the company's 10-year median is 3.39 vs. the industry median of 1.09, Kyndryl 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 1.09, based on 1,716 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. Kyndryl Holdings's current Debt-to-EBITDA of 2.94 is 171% 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 Kyndryl Holdings. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kyndryl Holdings's current Debt-to-EBITDA is 2.94, which is 13% below median its own 10-year median of 3.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kyndryl Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kyndryl Holdings (KD) is currently considered Possible Value Trap. The stock's GF Value™ is $23.64, compared to a current price of $12.22 — trading 48.3% below its estimated fair value. The current Debt-to-EBITDA is 2.94, which is 13% below median its 10-year median of 3.39 and 171% above the Software industry median of 1.09. Kyndryl Holdings' overall GF Score™ is 54/100 with 3 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 Kyndryl Holdings (KD), the current Debt-to-EBITDA is 2.94 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 Kyndryl Holdings (KD) Overvalued in 2026?
Based on GuruFocus' analysis, Kyndryl Holdings stock appears to be undervalued.
The current stock price of $12.22 is trading 48.3% below its estimated GF Value™ of $23.64.
GuruFocus considers Kyndryl Holdings to be Possible Value Trap.
Key valuation signals for KD:
Debt-to-EBITDA: 2.94 (13% below median its 10-year median of 3.39)
GF Value™: $23.64 vs. price of $12.22 (48.3% below fair value)
Industry Position: 171% above the Software median (#1310 of 1716)
No single metric tells the full story. See the KD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kyndryl Holdings Inc is a technology services and infrastructure services provider company. It provides advisory, implementation, and managed services across a range of technology domains to help customers manage and modernize enterprise IT environments in support of their business and transformation objectives. The company's reportable segments consist of the following: Principal Markets which represents its operations in operations in Australia / New Zealand, Canada, France, Germany, India, Italy, Spain, Portugal, and the United Kingdom / Ireland, United States, Japan, and Strategic Markets. It derives maximum revenue from the United States.
54GF Score
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