GDS Holdings Limited

NasdaqGM:GDS Stock Report

Market Cap: US$3.8b

GDS Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

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: Insufficient data to calculate GDS's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate GDS's fair value for valuation analysis.

Key Valuation Metric

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

Key metric: As GDS is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for GDS. This is calculated by dividing GDS's market cap by their current revenue.
What is GDS's PS Ratio?
PS Ratio2.4x
SalesCN¥10.98b
Market CapCN¥27.72b

Price to Sales Ratio vs Peers

How does GDS's PS Ratio compare to its 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.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.1x
DOCN DigitalOcean Holdings
4.6x12.3%US$3.5b
CORZ Core Scientific
8.6x24.0%US$4.6b
CD Chindata Group Holdings
4x15.7%US$3.1b
WIX Wix.com
7.1x11.6%US$10.3b
GDS GDS Holdings
2.4x15.0%US$3.8b

Price-To-Sales vs Peers: GDS is good value based on its Price-To-Sales Ratio (2.4x) compared to the peer average (6.1x).

Price to Sales Ratio vs Industry

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

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.4x1.7%US$6.51b
DXC DXC Technology
0.3x-1.9%US$3.55b
RXT Rackspace Technology
0.2x0.7%US$539.34m
UIS Unisys
0.3x3.4%US$511.20m
GDS 2.4xIndustry Avg. 2.0xNo. of Companies27PS02.44.87.29.612+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: GDS is expensive based on its Price-To-Sales Ratio (2.4x) compared to the US IT industry average (2x).

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 Ratio2.4x
Fair PS Ratio2.5x

Price-To-Sales vs Fair Ratio: GDS is good value based on its Price-To-Sales Ratio (2.4x) compared to the estimated Fair Price-To-Sales Ratio (2.5x).

Analyst Price Targets

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

The above table shows the analyst GDS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$18.57
US$24.63
+32.6%
22.2%US$30.70US$7.32n/a15
Nov ’25US$20.84
US$23.84
+14.4%
24.1%US$30.82US$7.45n/a15
Oct ’25US$22.38
US$22.43
+0.2%
26.2%US$30.00US$7.56n/a15
Sep ’25US$17.03
US$20.92
+22.8%
27.7%US$28.99US$7.62n/a15
Aug ’25US$11.17
US$15.53
+39.1%
35.5%US$28.96US$7.49n/a14
Jul ’25US$9.30
US$15.36
+65.2%
49.1%US$28.92US$6.98n/a16
Jun ’25US$8.02
US$15.40
+92.0%
49.1%US$28.99US$7.00n/a16
May ’25US$8.42
US$15.37
+82.5%
49.3%US$29.00US$6.99n/a16
Apr ’25US$6.99
US$15.88
+127.1%
48.5%US$29.03US$7.01n/a15
Mar ’25US$6.71
US$16.97
+153.0%
36.5%US$28.79US$8.72n/a17
Feb ’25US$5.46
US$17.58
+222.2%
33.1%US$28.89US$8.75n/a18
Jan ’25US$9.12
US$17.68
+93.9%
31.8%US$29.03US$8.79n/a19
Dec ’24US$10.27
US$18.28
+78.0%
28.9%US$28.98US$11.99n/a18
Nov ’24US$9.99
US$18.04
+80.6%
28.4%US$28.65US$11.86US$20.8418
Oct ’24US$10.95
US$18.01
+64.5%
27.5%US$28.72US$11.88US$22.3820
Sep ’24US$12.29
US$19.21
+56.3%
31.8%US$31.02US$11.89US$17.0321
Aug ’24US$12.82
US$20.54
+60.2%
40.7%US$46.94US$11.74US$11.1722
Jul ’24US$10.99
US$21.79
+98.3%
40.4%US$46.74US$11.69US$9.3022
Jun ’24US$10.34
US$23.28
+125.2%
37.7%US$47.72US$11.93US$8.0220
May ’24US$15.41
US$26.96
+75.0%
31.4%US$49.38US$15.57US$8.4220
Apr ’24US$18.66
US$26.96
+44.5%
31.4%US$49.38US$15.57US$6.9920
Mar ’24US$19.90
US$29.40
+47.7%
29.4%US$48.92US$13.67US$6.7120
Feb ’24US$25.48
US$29.62
+16.2%
30.5%US$50.00US$13.97US$5.4620
Jan ’24US$20.62
US$26.24
+27.3%
35.3%US$51.15US$14.32US$9.1221
Dec ’23US$14.87
US$27.01
+81.7%
41.4%US$53.56US$14.19US$10.2721
Nov ’23US$9.08
US$37.18
+309.5%
27.8%US$70.20US$21.44US$9.9921

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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