KD (Kyndryl Holdings) Effective Interest Rate on Debt %: 2.60% (As of Mar. 2026)


KD Kyndryl Holdings Inc KD
54 GF Score
Price $11.97
GF Value $23.64
Valuation Possible Value Trap
! 3 Warning Signs
View Full Analysis

What is Kyndryl Holdings Effective Interest Rate on Debt %?

Kyndryl Holdings KD -0.83% 54 Effective Interest Rate on Debt % is 2.60% as of Mar. 2026. 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.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Kyndryl Holdings's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $116 Mil. Kyndryl Holdings's average total debt for the quarter that ended in Mar. 2026 was $4,466 Mil. Therefore, Kyndryl Holdings's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 2.60%.


Kyndryl Holdings  (NYSE:KD) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Kyndryl Holdings Effective Interest Rate on Debt % Related Terms


Kyndryl Holdings Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Kyndryl Holdings's Effective Interest Rate on Debt % 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.

Kyndryl Holdings Effective Interest Rate on Debt % Chart

Kyndryl Holdings Annual Data
Trend Dec18 Dec19 Dec20 Mar21 Mar23 Mar24 Mar25 Mar26
Effective Interest Rate on Debt %
Get a 7-Day Free Trial 4.60 2.21 2.91 2.47 2.00

Kyndryl Holdings Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.33 1.90 1.99 2.10 2.60

KD vs INOD, VNET, PONY: Effective Interest Rate on Debt % Comparison

For the Information Technology Services subindustry, Kyndryl Holdings's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Software Industry

For the Software industry and Technology sector, Kyndryl Holdings's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Kyndryl Holdings's Effective Interest Rate on Debt % falls into.


KD
54GF Score
Kyndryl Holdings Inc KD
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kyndryl Holdings Effective Interest Rate on Debt % Calculation

Kyndryl Holdings's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Mar. 2025 )+Total Debt  (A: Mar. 2026 ))/ count )
=-1  *  -89/( (3956+4956)/ 2 )
=-1  *  -89/4456
=2.00 %

where

Kyndryl Holdings's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -116/( (3975+4956)/ 2 )
=-1  *  -116/4465.5
=2.60 %

where

* 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 Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 2.60% mean?
Kyndryl Holdings (KD) has a Effective Interest Rate on Debt % of 2.60% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Kyndryl Holdings and its competitors.
Is Kyndryl Holdings' Effective Interest Rate on Debt % too high?
Kyndryl Holdings' current Effective Interest Rate on Debt % is 2.60%. 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' Effective Interest Rate on Debt % compare to INOD and VNET?
Kyndryl Holdings' Effective Interest Rate on Debt % of 2.60% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Software company?
A good Effective Interest Rate on Debt % depends on the Software industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Kyndryl Holdings and its competitors. Kyndryl Holdings's current Effective Interest Rate on Debt % is 2.60%. 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 $11.97 — trading 49.4% below its estimated fair value. The current Effective Interest Rate on Debt % is 2.60%. 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 Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Kyndryl Holdings (KD), the current Effective Interest Rate on Debt % is 2.60% 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 $11.97 is trading 49.4% below its estimated GF Value™ of $23.64. GuruFocus considers Kyndryl Holdings to be Possible Value Trap.

Key valuation signals for KD:

  • Effective Interest Rate on Debt %: 2.60%
  • GF Value™: $23.64 vs. price of $11.97 (49.4% below fair value)
  • GF Score™: 54/100 with 3 warning signs

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 Business Description

Address One Vanderbilt Avenue, 15th Floor, New York, NY, USA, 10017
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

Get the complete analysis for KD

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$11.97
Price
$23.64
GF Value