# GDS Holdings Limited (GDS) fundamentals

Data as of 2026-11-04. NASDAQ, United States. Sector: Technology / Information Technology Services. Price $21.86, market value $4.4 billion.

## Valuation
- **P/E (trailing): 10.2×** (5-yr avg 37.0×, 3-yr avg 37.0×). GDS Holdings Limited trades at 10.2× 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 1726.8×, higher than trailing, so analysts expect earnings to fall.
- **Price / sales: 2.4×**. Each dollar of revenue is priced at 2.4×.
- **Price / book: 1.0×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 7.2×**. Enterprise value is 7.2× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -2.9%** (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: 9.8%**. The inverse of the P/E: 9.8% of the price is earned each year.

## Profitability
- **Gross margin: 24.8%**. GDS Holdings Limited 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.
- **Current ratio: 2.60** (quick 2.60). Current assets cover the next year's liabilities 2.60 times.
- **Altman Z-score: 0.81**. A Z-score of 0.81 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

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

## Analyst view
- **Analyst consensus: strong_buy** (16 analysts). 16 analysts cover GDS Holdings Limited; the consensus is strong_buy, with an average price target of $49.21 (+125% 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): -39.0%** (YTD -37.6%, 3-mo -33.4%). The shares are down 39.0% over twelve months including dividends.
- **From 52-week high: -55.0%** (2.1% above the low). Trading 55% 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): 31**. An RSI of 31 is neutral.
- **Beta (1 yr): 2.20** (volatility 56%). Beta of 2.20 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.