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ZYBERNO

Stock Report

Updated Aug 29, 2026

GDS Holdings Limited (GDS)

Technology • NASDAQ

$33.41

GDS Holdings Limited is a Chinese operator of high-performance data centers headquartered in Shanghai, China. The company develops and operates carrier-neutral colocation data centers primarily in major Chinese cities including Beijing, Shanghai, Shenzhen, Guangzhou, and Chengdu, serving hyperscale cloud service providers, large internet companies, and financial institutions requiring high-quality data center infrastructure in China.

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

18.0/100

POOR BUSINESS

GDS Holdings Limited (GDS) scores 18/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full GDS quality analysis & detailed breakdown

VALUATION SIGNAL

N/A (Requires more data)

Requires fair value calculation and current price data

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full GDS valuation analysis · → View full GDS Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (0.0%)

Debt-to-Equity (Solvency Risk):POOR (1.26x)

Operating Margin (Operational Efficiency):CRITICAL (0.0%)

Return on Capital (Capital Efficiency):CRITICAL (-0.1%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

GDS Holdings Limited (GDS) stock report — Zyberno Score 18/100 (POOR BUSINESS). Full financial analysis on Zyberno.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:33.41

Market Cap:$50.80B

Valuation Multiples (2)

P/B Ratio:12.85x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$52.52B

Ev Ebitda Ratio:110.56x

Price Action & Momentum (3)

12-1 Momentum:

-12.3% (34th pctile)

📈 Click to view full GDS Momentum analysis →

Momentum Percentile:34 / 100

% of 52-Week High:71.2%

B. Profitability Assessment

Return Metrics (3)

Roic:

-0.1%

📊 Click to view full GDS ROIC analysis →

Reinvestment Rate:-8,712.5%

Fundamental Growth Rate (g):6.3%

Margin Analysis (1)

Ebitda Margin:28.0%

Yield Metrics (2)

Earnings Yield:-$999.00

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:2.60x

Quick Ratio:2.60x

Cash Ratio:2.01x

Leverage Analysis (3)

Debt To Equity Ttm:1.26x

Debt-to-Equity Ratio:1.26x

Debt To Ebitda:8.08x

Coverage Ratios (2)

Interest Coverage Ratio:-0.03x

Times Interest Earned:-0.03

Capital Structure (4)

Working Capital:1,691,727,949.60

Cash And Cash Equivalents:2,119,413,371.74

Long Term Debt:$3.46B

Net Debt:$1.72B

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

$1.69B

Cost Of Revenue Ttm:$1.31B

Profitability Breakdown (2)

$383.03M-$8.26M

Bottom Line Performance (3)

$140.69M

Income Before Tax:$105.65M

Ebitda Ttm:475,008,509.06

Operating Expenses (5)

Operating Expenses:0.00

R And D Expense:4,844,472.30

Sga Expense:133,018,098.18

Income Tax Expense:$69.59M

Interest Expense:265,023,449.80

Expense Ratios (3)

R And D To Revenue Percentage:0.3%

Sga To Revenue Percentage:7.9%

Ebitda Margin:28.0%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$11.85B

Current Assets:$2.75B

Ppe Net:2,842,185,083.21

Goodwill:768,555,085.83

Intangible Assets:$40.50M

Liability Structure (4)

Total Liabilities:7,742,479,630.11

Current Liabilities:1,056,059,257.49

Long Term Debt:$3.46B

Short Term Debt:$376.35M

Equity & Capital (3)

Equity:$3.95B

Retained Earnings:-$754.78M

Common Stock:3,500,000,000.00

Working Capital Items (3)

Accounts Receivable:365,536,620.34

Inventory:0.00

Accounts Payable:286,250,090.37

Special Items (2)

Contract Liabilities:24,565,326.44

Stock Based Compensation:41,981,871.02

C. Cash Flow Analysis

Operating Activities (2)

$498.56M-$196.43M

Investment Activities (1)

Investing Cash Flow:-$450.37M

Financing Activities (3)

Financing Cash Flow:$904.60M

Dividends Paid Ttm:0.00

Stock Repurchase:17,728,101.94

Capital Transactions (3)

Common Stock Issuance:151,659,686.85

Long Term Debt Issuance:$416.92M

Long Term Debt Repayments:$1.18B

Non-Cash Items (1)

Depreciation Amortization Ttm:483,267,815.81

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (1)

Earnings Per Share Ttm:$0.09

Revenue & Cash Per Share (2)

Sales Per Share Ttm:1.11

Operating Cash Flow Per Share:$0.33

Book Value & Capital (2)

Book Value Per Share:$2.60

Cash Per Share:1.39

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.14x

Working Capital Turnover Ttm:1.00x

Receivables Management (2)

Receivables Turnover Ttm:4.63x

Days Sales Outstanding Ttm:78.78

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:79.72

Cash Conversion Cycle:-999.94

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:60.00

Quality Score:90.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (2)

Reinvestment Rate:-8,712.5%

Fundamental Growth Rate (g):6.3%

B. Log-Linear Regression Growth Analysis

C. Company Profile & Context

Corporate Information (6)

Symbol:GDS

Company Name:GDS Holdings Limited

Sector:Technology

Industry:Software Development

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:1.52B

Shares Outstanding Basic:1.52B

Shares Outstanding Diluted:1.64B

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-29 20:47:23 UTC

Data Timestamp:2026-08-29T20:47:23.853146