GDS HoldingsMEX:GDSN 69 Altman Z2-Score is 1.50 as of Jun. 26, 2026, which is 142% above its 10-year median of 0.62. GuruFocus rates MEX:GDSN with a GF Score™ of 69/100 and a GF Value™ of MXN449.22 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,822 Software companies, GDS Holdings ranks worse than 63.61% on this metric.
Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.
GDS Holdings has a Altman Z2-Score of 1.50, indicating it is in Grey Zones. This implies that GDS Holdings is in some kind of financial stress. If it is below 1.1, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.
The historical rank and industry rank for GDS Holdings's Altman Z2-Score or its related term are showing as below:
MEX:GDSN'
s Altman Z2-Score Range Over the Past 10 Years
Min: -0.81 Med: 0.62 Max: 2
Current: 1.5
During the past 12 years, GDS Holdings's highest Altman Z2-Score was 2.00. The lowest was -0.81. And the median was 0.62.
The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
Altman Z2-Score does not apply to financial companies.
GDS Holdings Altman Z2-Score Related Terms
GDS Holdings Altman Z2-Score Historical Data
* Premium members only.
The historical data trend for GDS Holdings's Altman Z2-Score 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: Altman Z2-Score Comparison
For the Information Technology Services subindustry, GDS Holdings's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score 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 Altman Z2-Score vs Software Industry
For the Software industry and Technology sector, GDS Holdings's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where GDS Holdings's Altman Z2-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.
GDS Holdings's Altman Z2-Score for today is calculated with this formula:
Z
=
6.56
*
X1
+
3.26
*
X2
+
6.72
*
X3
+
1.05
*
X4_2
=
6.56
*
0.1301
+
3.26
*
-0.0291
+
6.72
*
0.0246
+
1.05
*
0.5498
=
1.50
* 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. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.
GDS Holdings (MEX:GDSN) has a Altman Z2-Score of 1.50 as of Jun. 26, 2026. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on GDS Holdings and its competitors. This is 142% above median its historical median of 0.62. According to the industry distribution chart, GDS Holdings ranks #1795 out of 2822 companies in the Software industry, placing it in the top 63.6%.
Is GDS Holdings' Altman Z2-Score too high?
GDS Holdings' current Altman Z2-Score of 1.50 is 142% above median its 10-year median of 0.62. The Software industry median Altman Z2-Score is 3.07. GDS Holdings' value of 1.50 is 51.1% below this industry median. Based on the distribution chart, GDS Holdings ranks #1795 out of 2822 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' Altman Z2-Score compare to INGM and PSN?
According to the Software industry distribution chart, GDS Holdings ranks #1795 out of 2822 companies for Altman Z2-Score. This places GDS Holdings in the lower half of its industry. The industry median Altman Z2-Score is 3.07. GDS Holdings' value of 1.50 is 51.1% below this benchmark. While the company's 10-year median is 0.62 vs. the industry median of 3.07, GDS Holdings has consistently been below 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 Altman Z2-Score for a Software company?
The median Altman Z2-Score among Software companies is 3.07, based on 2,822 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z2-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z2-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GDS Holdings's current Altman Z2-Score of 1.50 is 51.1% below 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 Altman Z2-Score mean?
A high Altman Z2-Score can signal that a stock is expensive relative to its fundamentals. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on GDS Holdings and its competitors. For the Software industry, the median Altman Z2-Score is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GDS Holdings's current Altman Z2-Score is 1.50, which is 142% above median its own 10-year median of 0.62. 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 Altman Z2-Score is 1.50, which is 142% above median its 10-year median of 0.62 and 51.1% below the Software industry median of 3.07. 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 Altman Z2-Score calculated?
Altman Z2-Score is calculated from a company's financial statements. For GDS Holdings (MEX:GDSN), the current Altman Z2-Score is 1.50 as of Jun. 26, 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:
Altman Z2-Score: 1.50 (142% above median its 10-year median of 0.62)
GF Value™: MXN449.22 vs. price of MXN618.00 (37.6% above fair value)
Industry Position: 51.1% below the Software median (#1795 of 2822)
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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