DXC Valuation

DXC Technology Co

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14.150

+0.06(0.426%)1D

Overview
Forecast
Valuation
Earnings

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 4.54 is considered Undervalued compared with the five-year average of 7.40. The fair price of DXC Technology Co (DXC) is between 37.34 to 44.77 according to relative valuation methord. Compared to the current price of 14.15 USD , DXC Technology Co is Undervalued By 62.1%.

Relative Value

Fair Zone

37.34-44.77

Current Price：14.15

62.1%

Undervalued

4.54

Trailing

Forward

3.17

EV/EBITDA

DXC Technology Co. (DXC) has a current EV/EBITDA of 3.17. The 5-year average EV/EBITDA is 4.38. The thresholds are as follows: Strongly Undervalued below 3.01, Undervalued between 3.01 and 3.70, Fairly Valued between 5.07 and 3.70, Overvalued between 5.07 and 5.75, and Strongly Overvalued above 5.75. The current Forward EV/EBITDA of 3.17 falls within the Undervalued range.

6.21

EV/EBIT

DXC Technology Co. (DXC) has a current EV/EBIT of 6.21. The 5-year average EV/EBIT is 8.66. The thresholds are as follows: Strongly Undervalued below 5.81, Undervalued between 5.81 and 7.24, Fairly Valued between 10.09 and 7.24, Overvalued between 10.09 and 11.52, and Strongly Overvalued above 11.52. The current Forward EV/EBIT of 6.21 falls within the Undervalued range.

0.20

DXC Technology Co. (DXC) has a current PS of 0.20. The 5-year average PS is 0.38. The thresholds are as follows: Strongly Undervalued below 0.16, Undervalued between 0.16 and 0.27, Fairly Valued between 0.49 and 0.27, Overvalued between 0.49 and 0.60, and Strongly Overvalued above 0.60. The current Forward PS of 0.20 falls within the Undervalued range.

1.73

P/OCF

DXC Technology Co. (DXC) has a current P/OCF of 1.73. The 5-year average P/OCF is 3.90. The thresholds are as follows: Strongly Undervalued below 0.93, Undervalued between 0.93 and 2.41, Fairly Valued between 5.38 and 2.41, Overvalued between 5.38 and 6.87, and Strongly Overvalued above 6.87. The current Forward P/OCF of 1.73 falls within the Undervalued range.

3.90

P/FCF

DXC Technology Co. (DXC) has a current P/FCF of 3.90. The 5-year average P/FCF is 7.81. The thresholds are as follows: Strongly Undervalued below 1.73, Undervalued between 1.73 and 4.77, Fairly Valued between 10.86 and 4.77, Overvalued between 10.86 and 13.90, and Strongly Overvalued above 13.90. The current Forward P/FCF of 3.90 falls within the Undervalued range.

DXC Technology Co (DXC) has a current Price-to-Book (P/B) ratio of 0.80. Compared to its 3-year average P/B ratio of 1.28 , the current P/B ratio is approximately -37.59% higher. Relative to its 5-year average P/B ratio of 1.39, the current P/B ratio is about -42.34% higher. DXC Technology Co (DXC) has a Forward Free Cash Flow (FCF) yield of approximately 43.73%. Compared to its 3-year average FCF yield of 29.40%, the current FCF yield is approximately 48.76% lower. Relative to its 5-year average FCF yield of 21.28% , the current FCF yield is about 105.50% lower.

0.80

P/B

Median3y

1.28

Median5y

1.39

43.73

FCF Yield

Median3y

29.40

Median5y

21.28

Competitors Valuation Multiple

The average P/S ratio for DXC's competitors is 2.71, providing a benchmark for relative valuation. DXC Technology Co Corp (DXC) exhibits a P/S ratio of 0.20, which is -92.64% 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

Bitdeer Technologies Group

Performance Decomposition

Market capitalization of DXC decreased by 31.54% 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 -3.19%to the performance.

Overall, the performance of DXC in the past 1 year is driven by Revenue Growth. Which is more sustainable.

-2.38%

3.24B → 3.16B

Revenue Growth

-25.97%

0.77 → 0.57

Margin Expansion

-3.19%

7.11 → 6.89

P/E Change

-31.54%