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GDS HoldingsGDS -2.42%64 EV-to-EBIT is 38.38 as of Jul. 29, 2026, which is 67% below its 10-year median of 117.13. GuruFocus rates GDS with a GF Score™ of 64/100 and a GF Value™ of $21.18 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,770 Software companies, GDS Holdings ranks worse than 80.23% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
GDS Holdings's Enterprise Value for the quarter that ended in Mar. 2026 was $13,352 Mil.
GDS Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $294 Mil.
* 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.
GDS Holdings EV-to-EBIT Related Terms
GDS Holdings EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for GDS Holdings's EV-to-EBIT 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 EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, GDS Holdings's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where GDS Holdings's EV-to-EBIT falls into.
GDS Holdings's current Enterprise Value is $11,266 Mil.
GDS Holdings's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $294 Mil.
* 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.
GDS Holdings (GDS) has a EV-to-EBIT of 38.38 as of Jul. 29, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on GDS Holdings and its competitors. This is 67% below median its historical median of 117.13. According to the industry distribution chart, GDS Holdings ranks #1420 out of 1770 companies in the Software industry, placing it in the top 80.2%.
Is GDS Holdings' EV-to-EBIT too high?
GDS Holdings' current EV-to-EBIT of 38.38 is 67% below median its 10-year median of 117.13. The Software industry median EV-to-EBIT is 14.15. GDS Holdings' value of 38.38 is 171.2% above this industry median. Based on the distribution chart, GDS Holdings ranks #1420 out of 1770 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' EV-to-EBIT compare to PSN and INGM?
According to the Software industry distribution chart, GDS Holdings ranks #1420 out of 1770 companies for EV-to-EBIT. This places GDS Holdings in the lower half of its industry. The industry median EV-to-EBIT is 14.15. GDS Holdings' value of 38.38 is 171.2% above this benchmark. While the company's 10-year median is 117.13 vs. the industry median of 14.15, 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 14.15, based on 1,770 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GDS Holdings's current EV-to-EBIT of 38.38 is 171.2% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on GDS Holdings and its competitors. For the Software industry, the median EV-to-EBIT is 14.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GDS Holdings's current EV-to-EBIT is 38.38, which is 67% below median its own 10-year median of 117.13. 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 $21.18, compared to a current price of $29.88 — trading 41.1% above its estimated fair value. The current EV-to-EBIT is 38.38, which is 67% below median its 10-year median of 117.13 and 171.2% above the Software industry median of 14.15. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For GDS Holdings (GDS), the current EV-to-EBIT is 38.38 as of Jul. 29, 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 $29.88 is trading 41.1% above its estimated GF Value™ of $21.18.
GuruFocus considers GDS Holdings to be Significantly Overvalued.
Key valuation signals for GDS:
EV-to-EBIT: 38.38 (67% below median its 10-year median of 117.13)
GF Value™: $21.18 vs. price of $29.88 (41.1% above fair value)
Industry Position: 171.2% above the Software median (#1420 of 1770)
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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