Kyndryl Holdings, Inc.

Worth knowing

• Much more borrowing than peers. Debt is 6.0× equity vs a peer median of 0.2×.Debt is 6.0× equity vs peers 0.2×.

  Debt is 6.0× shareholders' equity, against a peer median of 0.2×, among the highest 10% of its peer group.Debt is 6.0× shareholders' equity, vs peers 0.2×, among the highest 10% of its peer group.

• Valuation signals disagree. Cheaper than 95% of peers on operating cash profit (EBITDA), but only 55% on earnings.Cheaper than 95% of peers on operating cash profit, but only 55% on earnings.

  Relative to its operating cash profit (EBITDA), Kyndryl looks cheaper than 95% of peers; relative to its earnings, cheaper than only 55%. The valuation score blends the two, so look at which measure fits this business best.Relative to its operating cash profit, Kyndryl looks cheaper than 95% of peers; relative to its earnings, cheaper than only 55%. The valuation score blends the two, so look at which measure fits this business best.

• Profit is backed by cash. Free cash flow is 200% of reported profit.

  Kyndryl's free cash flow is 200% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

• More volatile share price. Beta 1.73: tends to move more than the market.

  Kyndryl's shares have swung more with the market than most peers' (beta 1.73, above the market's 1.0).