We’ve recently updated our valuation analysis.

GDS Holdings Valuation

Is GDS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score


Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GDS?

Other financial metrics that can be useful for relative valuation.

GDS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.7x
Enterprise Value/EBITDA16.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does GDS's PS Ratio compare to its peers?

GDS PS Ratio vs Peers
The above table shows the PS ratio for GDS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average5x
WIX Wix.com
DOCN DigitalOcean Holdings
SQSP Squarespace
CD Chindata Group Holdings
GDS GDS Holdings

Price-To-Sales vs Peers: GDS is good value based on its Price-To-Sales Ratio (2.7x) compared to the peer average (5x).

Price to Earnings Ratio vs Industry

How does GDS's PE Ratio compare vs other companies in the US IT Industry?

Price-To-Sales vs Industry: GDS is expensive based on its Price-To-Sales Ratio (2.7x) compared to the US IT industry average (2.4x)

Price to Sales Ratio vs Fair Ratio

What is GDS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GDS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.7x
Fair PS Ratio2.8x

Price-To-Sales vs Fair Ratio: GDS is good value based on its Price-To-Sales Ratio (2.7x) compared to the estimated Fair Price-To-Sales Ratio (2.8x).

Share Price vs Fair Value

What is the Fair Price of GDS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GDS ($17.4) is trading above our estimate of fair value ($0.63)

Significantly Below Fair Value: GDS is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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