GDS Holdings Limited (GDS)
UndervaluedFundamental
49
Price
$30.89
Market Cap
$6.26B
Part 1 · What the company is worth
Overview
GDS Holdings Limited, together with its subsidiaries, engages in the development and operation of data centers in the People's Republic of China. It provides colocation services comprising critical facilities space, customer-available power, racks, and cooling; managed hosting services, including business continuity and disaster recovery, network management, data storage, system security, operating system, database, and server middleware services; managed cloud services; and consulting services. The company serves cloud service providers, large Internet companies, financial institutions, telecommunications carriers and IT service providers, large domestic private sector, and multinational corporations. GDS Holdings Limited was founded in 2001 and is headquartered in Shanghai, the People's Republic of China.
No editorial profile for this company yet
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
The other US-listed carrier-neutral data centre operator in China, selling wholesale and retail colocation capacity to the same Chinese internet and cloud customers in the Beijing, Shanghai and Guangdong clusters.
Private since Bain Capital took it off Nasdaq in 2023, it builds the same hyperscale campuses for the same handful of large Chinese cloud tenants that account for most of GDS's contracted capacity.
A domestic carrier-neutral data centre operator concentrated in Beijing and the surrounding region, bidding for the same enterprise and cloud colocation contracts.
The largest state-owned carrier runs its own IDC estate and is named by GDS as a direct competitor for hosting and colocation spend, even though it also supplies GDS with connectivity.
The global carrier-neutral colocation operator competes with GDS both for multinational customers landing in Shanghai and Beijing and for the Southeast Asian expansion GDS pursues through its international arm.
Balance Sheet & Liquidity
Revenue
$12.26B
Trailing 12 months (through 6/30/2026)
Net Income
$3.74B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$-4.60B
Total Equity
$4.38B
Total Liabilities
$47.38B
Current Ratio
1.78
Interest Coverage
-
Debt/EBITDA
8.61
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$49.02
Current Price
$30.89
Margin of Safety
+37.0%
Fair Value Range
$31.86 - $66.18
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
13.76
ROE
12.8%
P/B Ratio
1.39
P/FCF
-
Gross Margin
24.8%
ROIC
2.7%
Profitability Radar
Value Creation (Economic Moat)
ROIC
2.7%
WACC
6.5%
ROIC − WACC
-3.8 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (8)
- Price CAGR 14.43%
- P/B Ratio 1.39
- Current Ratio
- ROE 12.8%
- Revenue Growth 5Y 14.8%
- Analyst Consensus 93% Buy
- Earnings Surprise avg 3071.8%
- Earnings Quality (OCF/NI) 4.00
Failed (8)
- ROIC 2.7%
- Gross Margin 24.8%
- Debt/Equity ratio
- Positive Free Cash Flow
- Debt/EBITDA
- DCF valuation (Unknown)
- Net Margin Trend 7.8% vs 32.7%
- Piotroski F-Score 2/9
Unavailable (11)
- EPS data insufficient
- P/FCF NaN
- Dividend Payout NaN%
- Operating Margin NaN%
- CapEx intensity
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- Price below Graham Number
- PEG Ratio (need PE > 0 and growth > 0)
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Wei Huang | Founder, Chairman of the Board & CEO | 58 |
| Mr. Daniel A. Newman | Chief Financial Officer | 64 |
| Ms. Laura Chen | Head of Investor Relations | - |
| Mr. Kejing Zhang | Executive Vice President of Sales & Service | 42 |
| Ms. Yan Liang | Executive Vice President of Data Center Operation & Delivery | 50 |
| Ms. Yixin Qian | Executive Vice President of Operation | 53 |
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for GDS, sourced from Markets Gazette.
- 3/25/2026POSITIVEGDS Ends Years Of Losses On AI Demand And One-Time Gain
GDS Holdings Limited has reported an end to its multi-year streak of losses, driven by robust demand for its data center services fueled by the artificial intelligence boom. The company also benefited from a significant one-time financial gain, details of which are yet to be fully disclosed. This turnaround signals a potential inflection point for the company, suggesting its strategic investments in AI-ready infrastructure are now yielding substantial operational and financial improvements. Investors will be closely watching for sustained profitability and further growth catalysts in the coming quarters.
via Markets Gazette