DXC Relative Valuation
DXC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DXC is overvalued; if below, it's undervalued.
Historical Valuation
DXC Technology Co (DXC) is now in the Undervalued zone, suggesting that its current forward PE ratio of 4.30 is considered Undervalued compared with the five-year average of 7.44. The fair price of DXC Technology Co (DXC) is between 227.32 to 234.46 according to relative valuation methord. Compared to the current price of 13.23 USD , DXC Technology Co is Undervalued By 94.18%.
Relative Value
Fair Zone
227.32-234.46
Current Price：13.23
94.18%
Undervalued
4.30
PE
1Y
3Y
5Y
Trailing
Forward
3.06
EV/EBITDA
DXC Technology Co. (DXC) has a current EV/EBITDA of 3.06. The 5-year average EV/EBITDA is 4.41. The thresholds are as follows: Strongly Undervalued below 3.05, Undervalued between 3.05 and 3.73, Fairly Valued between 5.09 and 3.73, Overvalued between 5.09 and 5.77, and Strongly Overvalued above 5.77. The current Forward EV/EBITDA of 3.06 falls within the Undervalued range.
5.97
EV/EBIT
DXC Technology Co. (DXC) has a current EV/EBIT of 5.97. The 5-year average EV/EBIT is 8.74. The thresholds are as follows: Strongly Undervalued below 5.84, Undervalued between 5.84 and 7.29, Fairly Valued between 10.19 and 7.29, Overvalued between 10.19 and 11.64, and Strongly Overvalued above 11.64. The current Forward EV/EBIT of 5.97 falls within the Undervalued range.
0.18
PS
DXC Technology Co. (DXC) has a current PS of 0.18. The 5-year average PS is 0.39. The thresholds are as follows: Strongly Undervalued below 0.17, Undervalued between 0.17 and 0.28, Fairly Valued between 0.49 and 0.28, Overvalued between 0.49 and 0.60, and Strongly Overvalued above 0.60. The current Forward PS of 0.18 falls within the Undervalued range.
1.58
P/OCF
DXC Technology Co. (DXC) has a current P/OCF of 1.58. The 5-year average P/OCF is 3.92. The thresholds are as follows: Strongly Undervalued below 0.99, Undervalued between 0.99 and 2.46, Fairly Valued between 5.38 and 2.46, Overvalued between 5.38 and 6.85, and Strongly Overvalued above 6.85. The current Forward P/OCF of 1.58 falls within the Undervalued range.
3.56
P/FCF
DXC Technology Co. (DXC) has a current P/FCF of 3.56. The 5-year average P/FCF is 7.84. The thresholds are as follows: Strongly Undervalued below 1.79, Undervalued between 1.79 and 4.82, Fairly Valued between 10.86 and 4.82, Overvalued between 10.86 and 13.88, and Strongly Overvalued above 13.88. The current Forward P/FCF of 3.56 falls within the Undervalued range.
DXC Technology Co (DXC) has a current Price-to-Book (P/B) ratio of 0.76. Compared to its 3-year average P/B ratio of 1.29 , the current P/B ratio is approximately -41.39% higher. Relative to its 5-year average P/B ratio of 1.39, the current P/B ratio is about -45.57% higher. DXC Technology Co (DXC) has a Forward Free Cash Flow (FCF) yield of approximately 47.92%. Compared to its 3-year average FCF yield of 28.98%, the current FCF yield is approximately 65.33% lower. Relative to its 5-year average FCF yield of 21.26% , the current FCF yield is about 125.36% lower.
0.76
P/B
Median3y
1.29
Median5y
1.39
47.92
FCF Yield
Median3y
28.98
Median5y
21.26
Competitors Valuation Multiple
The average P/S ratio for DXC's competitors is 2.48, providing a benchmark for relative valuation. DXC Technology Co Corp (DXC) exhibits a P/S ratio of 0.18, which is -92.65% above the industry average. Given its robust revenue growth of -2.38%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DXC decreased by 35.46% over the past 1 year. The primary factor behind the change was an decrease in Revenue Growth from 3.24B to 3.16B.
The secondary factor is the P/E Change, contributed -7.11%to the performance.
Overall, the performance of DXC in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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