Per NYU Stern Business School .... the average Price-to-Sales Ratio for a "Computer Services" company is 1.11. Kyndryl's P/S equals just 0.22.
P/S = Market Capitalization / Revenue ... with a P/S = 1.11, and Kyndryl's projected Revenue = $19.3B ... equals $21.4B
Sooo we're just ~20% of where we should be! Way to go Kyndryl Execs!
(Sources: https://finance.yahoo.com/quote/KD/key-statistics?p=KD
https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html )
KD reached a new all-time low today. Anyone who listened to Motley is indeed a Fool.
Yep, directly from that Motley Fool article ...
"You can pick up shares at the bargain-bin valuation of 0.22 times that sales figure. Even if revenues are shrinking quickly, that's too low. I can't find a close competitor trading below 0.48 times trailing sales and the IBM mothership commands a P/S ratio of 1.41"
And ... "Among 1,618 stocks on U.S. exchanges with a market cap of at least $4 billion (Kyndryl stands at $4.2 billion), only 12 carry lower price-to-sales ratios than this ticker."
The street is starting to notice
https://www.fool.com/investing/2021/11/21/better-buy-ibm-or-kyndryl/
Kyndryl will get acquired once its stock price falters to nothing.
Financials are financials. Kyndryl isn’t hiding anything and in fact has said they will not be profitable for 2-3 years. There is a LOT of restructuring to be done at Kyndryl to turn the ship. IBM spun-off the weak sister and made no bones about it. I expect the weakness is from IBM’er selling on getting their “new” Kyndryl shares. Just remember IBM still holds 20% of Kyndryl which they have stated they will sell over the next year. It is not in their interest to prolong the stock weakness. I expect one of the Smaller players to make a play for Kyndryl. Why Because when you compete in commodity labor markets, getting bigger allows you to drive margins
trust that the execs all knew about what would happen to the stock long beforehand
Not necessarily. The kool-aid flows freely way up there in the gilded towers.
42x PTI for a shrinking company with leadership with weak industry experience, damaged assets, unsustainable cost structure. Wear a hard hat if you are standing below this stock price.
This is nonsense. Kyndryl left with only $1B free cash flow and no growth prospects expected for several years. That's why its market cap is low. It simply doesn't make sense to treat it like a unicorn company. And trust that the execs all knew about what would happen to the stock long beforehand. Btw IBM had 12B in free cash flow before Kyndryl left now 11B. Kyndryl is literally all the stuff that is low margin.
Jim Chanos is making millions being short IBM…
…stock advice from someone anonymously posting on a layoff site.
IBM share price now at $116 the drop continues
What did you expect!!! MS was just another financial engineering CEO JERK!!! Destroyed the company along with the ultimate POS GR.
Well since we're doing math here now, if the Wall Street analysts really did believe that $19.3B revenue number, then the stock price would be (get this) $95.7 per share!
P/S = Per-Share Stock Price / Per-Share Revenue; and Per-share Revenue currently = $19.3B Revenue / 0.22392B shares = $86.2/share.
Therefore, Per-Share Stock Price = 1.11 P/S * $86.2 = $95.68 per share! Voila!
lmao That ain't happening.
ok, yeah, so CLEARLY Wall Street does NOT believe that bloated $19.3 BILLION Revenue projection.
Thus, more RAs and PIPs ahead. Merry Christmas!