Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. GDS Holdings's Pre-Tax Income for the
three
months ended in Mar. 2026 was MXN1,634 Mil. GDS Holdings's Revenue for the
three
months ended in Mar. 2026 was MXN8,810 Mil. Therefore, GDS Holdings's pretax margin for the quarter that ended in Mar. 2026 was 18.54%.
The historical rank and industry rank for GDS Holdings's Pretax Margin % or its related term are showing as below:
MEX:GDSN'
s Pretax Margin % Range Over the Past 10 Years
Min: -40.29 Med: -11.24 Max: 6.24
Current: 2.85
MEX:GDSN's Pretax Margin % is ranked worse than 51.47% of 2825
companies
in the Software industry
Industry Median: 3.53
vs MEX:GDSN: 2.85
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
GDS Holdings Pretax Margin % Related Terms
GDS Holdings Pretax Margin % Historical Data
* Premium members only.
The historical data trend for GDS Holdings's Pretax Margin % 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.
MEX:GDSN vs INGM, PSN, G: Pretax Margin % Comparison
For the Information Technology Services subindustry, GDS Holdings's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Software Industry
For the Software industry and Technology sector, GDS Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where GDS Holdings's Pretax Margin % 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.
GDS Holdings (MEX:GDSN) has a Pretax Margin % of 18.54% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on GDS Holdings and its competitors. According to the industry distribution chart, GDS Holdings ranks #1454 out of 2825 companies in the Software industry, placing it in the top 51.5%.
Is GDS Holdings' Pretax Margin % too high?
GDS Holdings' current Pretax Margin % is 18.54%. The Software industry median Pretax Margin % is 3.53. GDS Holdings' value of 18.54% is 425.2% above this industry median. Based on the distribution chart, GDS Holdings ranks #1454 out of 2825 companies in the Software industry, which is below the industry midpoint. Overall, GDS Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GDS Holdings' Pretax Margin % compare to INGM and PSN?
According to the Software industry distribution chart, GDS Holdings ranks #1454 out of 2825 companies for Pretax Margin %. This places GDS Holdings in the lower half of its industry. The industry median Pretax Margin % is 3.53. GDS Holdings' value of 18.54% is 425.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.53, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GDS Holdings's current Pretax Margin % of 18.54% is 425.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on GDS Holdings and its competitors. For the Software industry, the median Pretax Margin % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GDS Holdings's current Pretax Margin % is 18.54%. 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 (MEX:GDSN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN449.22, compared to a current price of MXN618.00 — trading 37.6% above its estimated fair value. The current Pretax Margin % is 18.54% and 425.2% above the Software industry median of 3.53. GDS Holdings' overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For GDS Holdings (MEX:GDSN), the current Pretax Margin % is 18.54% 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 (MEX:GDSN) Overvalued in 2026?
Based on GuruFocus' analysis, GDS Holdings stock appears to be overvalued.
The current stock price of MXN618.00 is trading 37.6% above its estimated GF Value™ of MXN449.22.
GuruFocus considers GDS Holdings to be Significantly Overvalued.
Key valuation signals for MEX:GDSN:
Pretax Margin %: 18.54%
GF Value™: MXN449.22 vs. price of MXN618.00 (37.6% above fair value)
Industry Position: 425.2% above the Software median (#1454 of 2825)
No single metric tells the full story. See the MEX:GDSN 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.
69GF Score
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