# GDS Holdings Limited ADS (GDS) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Information Technology Services. Price $31.36, market value $6.3 billion.

## Valuation
- **P/E (trailing): 13.9×** (5-yr avg 37.0×, 3-yr avg 37.0×). GDS Holdings Limited ADS trades at 13.9× trailing earnings, well below its own five-year average of 37.0×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 896.4×, higher than trailing, so analysts expect earnings to fall.
- **Price / sales: 3.4×**. Each dollar of revenue is priced at 3.4×.
- **Price / book: 1.4×**. The shares trade at 1.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 9.5×**. Enterprise value is 9.5× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: -2.0%** (5-yr avg -7.4%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 7.2%**. The inverse of the P/E: 7.2% of the price is earned each year.

## Profitability
- **Gross margin: 24.8%**. GDS Holdings Limited ADS keeps 24.8% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 17.2%**. 17.2% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 8.3%**. 8.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 3.7%**. 3.7% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 2.8%**. Return on all capital, debt included, is 2.8%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 4.7%**. Each dollar of assets produces 4.7% of profit.

## Growth
- **Revenue growth (1 yr): 10.8%** (3-yr 7.2%/yr, 5-yr 14.8%/yr). Revenue grew 10.8% over the last year, against 14.8% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -75.8%**. Earnings per share fell 75.8%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 1.00**. Debt is 1.00 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 2.1×**. It would take 2.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 1.2×**. Operating profit covers interest only 1.2×: fragile.
- **Altman Z-score: 0.66**. A Z-score of 0.66 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. GDS Holdings Limited ADS does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (16 analysts). 16 analysts cover GDS Holdings Limited ADS; the consensus is strong_buy, with an average price target of $51.39 (+64% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -4.3%** (YTD -10.1%, 3-mo -7.8%). The shares are down 4.3% over twelve months including dividends.
- **From 52-week high: -35.5%** (16.3% above the low). Trading 35% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 44**. An RSI of 44 is neutral.
- **Beta (1 yr): 2.00** (volatility 59%). Beta of 2.00 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=GDS · Page: https://foliofundamentals.com/stocks/gds

Not investment advice.