Kyndryl Holdings may actually be undervalued due to strategic restructuring and profit growth projections.

From Yahoo Finance: 2025-03-27 11:11:00

Kyndryl Holdings (NYSE: KD) appears pricey with a high P/E ratio and negative free cash flows. However, the company is restructuring, aiming for 90% of deals renegotiated by 2028. Free cash flow could triple by 2028, stabilizing revenue growth. CEO’s financial expertise may lead to long-term profit growth, making the stock more affordable.

Kyndryl’s stock, once deemed expensive, now shows potential for long-term returns. The company’s strategic restructuring and profit growth projections suggest undervaluation. If free cash flow reaches $1 billion by 2028, the stock price could double and still be reasonable compared to competitors like Accenture and WiPro.

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Read more: Think Kyndryl Holdings is Expensive? This Chart Might Change Your Mind.