GDS Holdings GDS
ChinaTechnology · Information Technology ServicesUSD
50.22 USD (+58.8%)
15 analysts
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GDS Holdings is a leading provider of data centers and IT services in China, offering colocation, interconnection, and cloud solutions to enterprise and hyperscale customers.
Key points
from its scores- ✕Little or no dividend1.5
- ✕Little competitive advantage2.6
- ✕Fragile balance sheet3.4
AI analysis
bottom line, main risk, context and newsHigh leverage, weak cash generation, and governance risk in China make GDS a high-risk investment despite its apparent low valuation.
GDS presents a highly leveraged balance sheet (Net Debt/EBITDA of 5.90) and negative free cash flow generation (conversion of -83.66%), which weighs on its financial health and quality. Despite a low P/E (14.71), the soaring forward P/E (5044.41) and negative FCF yield (-10.85%) reveal that current earnings are not sustainable, questioning the attractiveness of its valuation.
The main risk is the high financial leverage (Net Debt/EBITDA of 5.90) combined with negative free cash flow generation, which could lead to solvency issues if the business does not improve or if financing conditions tighten.
Context and risks
GDS operates data centers in China, a country with weak governance and significant state control over strategic sectors such as telecommunications and digital infrastructure. The risk of regulatory or political intervention affecting the business is high, and minority shareholder protection is limited.
Is GDS Holdings stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 43% below the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 14.7 | 31.3 | −53% |
| EV / EBITDA | 13.6 | 20.4 | −33% |
| Price / book | 1.6 | 6.3 | −75% |
| Price / sales | 3.5 | 5.3 | −34% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.5 out of 10 (median for Technology: 5.3).
Average analyst target: 50.22 USD, +58.8% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 3.4 (sector 6.9), Growth 6.0 (sector 7.5).
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 14.7
- Forward P/E
- 5,044.4
- EV / EBITDA
- 13.6
- Price / book
- 1.6
- Price / sales
- 3.5
- PEG
- 0.72
- Market cap
- 6.3B USD
- Enterprise value
- 74.9B CNY
Profitability
- ROE
- 12.8%
- ROA
- 1.6%
- ROIC (approx.)
- 2.4%
- Gross margin
- 24.8%
- Operating margin
- 14.2%
- Net margin
- 30.5%
- Free cash flow
- −4.6B CNY
- FCF yield
- −10.8%
- Cash conversion
- −84%
Solvency
- Total debt
- 47.4B CNY
- Net debt
- 32.5B CNY
- Cash
- 14.9B CNY
- EBITDA
- 5.5B CNY
- Net debt / EBITDA
- 5.90
- Debt / equity
- 142.52
- Current ratio
- 1.78
- Quick ratio
- 1.38
Growth
- Revenue growth
- +6.5%
- EPS (TTM)
- 2.15 USD
- EPS (forward)
- 0.01 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.42
- Analyst consensus
- Strong buy (15)
- Target price
- 50.22 USD
- 52-week range
- 26.97 – 48.61
Recent news
All GDS news →Compare it with its sector
All 283 in Technology →Frequently asked questions about GDS Holdings
Is GDS Holdings stock cheap or expensive?
On P/E and EV / EBITDA, it trades 43% below the Technology median on average. Valuation score: 5.5 out of 10 (median for Technology: 5.3). Average analyst target: 50.22 USD, +58.8% versus the price. This is not investment advice.
What score does GDS Holdings get on MeridIAn Screener?
It scores 4.4 out of 10, rank 1,898 of 2,130 (better than 10% of the companies analysed). Its strongest category is Growth (6.0) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is GDS Holdings's P/E ratio?
Its P/E is 14.7: the share price equals 14.7 times earnings per share over the last 12 months. The Technology median is 31.3.
How much is GDS Holdings worth on the stock market?
Its market capitalisation is 6.3B USD and its enterprise value, debt included, is 74.9B USD.
How much debt does GDS Holdings have?
Its net debt (debt minus cash) is 32.5B CNY. That is 5.90 times its EBITDA; the Technology median is 0.20.
Does GDS Holdings pay a dividend?
It pays no dividend, or almost none.
How has GDS Holdings stock performed over the last year?
It has fallen 5.0% over the last year, excluding dividends. Over the last 52 weeks it has traded between 26.97 and 48.61 USD. Past performance does not guarantee future results.
What do analysts think of GDS Holdings?
15 analysts cover it; their average recommendation is “Strong buy” and their average target is 50.22 USD (+58.8% versus the price). It is an estimate, not market data.