RXT PE Ratio & Valuation,Is RXT Overvalued

RXT Relative Valuation

RXT'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, RXT is overvalued; if below, it's undervalued.

Historical Valuation

Rackspace Technology Inc (RXT) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.10 is considered Undervalued compared with the five-year average of 1.29. The fair price of Rackspace Technology Inc (RXT) is between 3.13 to 10.94 according to relative valuation methord. Compared to the current price of 1.08 USD , Rackspace Technology Inc is Undervalued By 65.34%.

Relative Value

Fair Zone

3.13-10.94

Current Price：1.08

65.34%

Undervalued

-23.68

11.59

EV/EBITDA

Rackspace Technology Inc. (RXT) has a current EV/EBITDA of 11.59. The 5-year average EV/EBITDA is 11.31. The thresholds are as follows: Strongly Undervalued below 7.97, Undervalued between 7.97 and 9.64, Fairly Valued between 12.99 and 9.64, Overvalued between 12.99 and 14.66, and Strongly Overvalued above 14.66. The current Forward EV/EBITDA of 11.59 falls within the Historic Trend Line -Fairly Valued range.

22.06

EV/EBIT

Rackspace Technology Inc. (RXT) has a current EV/EBIT of 22.06. The 5-year average EV/EBIT is 22.50. The thresholds are as follows: Strongly Undervalued below 9.57, Undervalued between 9.57 and 16.03, Fairly Valued between 28.97 and 16.03, Overvalued between 28.97 and 35.44, and Strongly Overvalued above 35.44. The current Forward EV/EBIT of 22.06 falls within the Historic Trend Line -Fairly Valued range.

0.10

Rackspace Technology Inc. (RXT) has a current PS of 0.10. The 5-year average PS is 0.46. The thresholds are as follows: Strongly Undervalued below -0.45, Undervalued between -0.45 and 0.00, Fairly Valued between 0.91 and 0.00, Overvalued between 0.91 and 1.36, and Strongly Overvalued above 1.36. The current Forward PS of 0.10 falls within the Historic Trend Line -Fairly Valued range.

1.64

P/OCF

Rackspace Technology Inc. (RXT) has a current P/OCF of 1.64. The 5-year average P/OCF is 10.84. The thresholds are as follows: Strongly Undervalued below -28.60, Undervalued between -28.60 and -8.88, Fairly Valued between 30.57 and -8.88, Overvalued between 30.57 and 50.29, and Strongly Overvalued above 50.29. The current Forward P/OCF of 1.64 falls within the Historic Trend Line -Fairly Valued range.

3.12

P/FCF

Rackspace Technology Inc. (RXT) has a current P/FCF of 3.12. The 5-year average P/FCF is -1.27. The thresholds are as follows: Strongly Undervalued below -65.89, Undervalued between -65.89 and -33.58, Fairly Valued between 31.03 and -33.58, Overvalued between 31.03 and 63.34, and Strongly Overvalued above 63.34. The current Forward P/FCF of 3.12 falls within the Historic Trend Line -Fairly Valued range.

Rackspace Technology Inc (RXT) has a current Price-to-Book (P/B) ratio of -0.23. Compared to its 3-year average P/B ratio of 1.97 , the current P/B ratio is approximately -111.73% higher. Relative to its 5-year average P/B ratio of 2.02, the current P/B ratio is about -111.43% higher. Rackspace Technology Inc (RXT) has a Forward Free Cash Flow (FCF) yield of approximately 25.07%. Compared to its 3-year average FCF yield of 27.90%, the current FCF yield is approximately -10.16% lower. Relative to its 5-year average FCF yield of 20.24% , the current FCF yield is about 23.87% lower.

-0.23

P/B

Median3y

1.97

Median5y

2.02

25.07

FCF Yield

Median3y

27.90

Median5y

20.24

Competitors Valuation Multiple

The average P/S ratio for RXT's competitors is 1.26, providing a benchmark for relative valuation. Rackspace Technology Inc Corp (RXT) exhibits a P/S ratio of 0.10, which is -92% above the industry average. Given its robust revenue growth of -0.68%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of RXT decreased by 48.87% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.91 to -1.06.

The secondary factor is the Revenue Growth, contributed -0.68%to the performance.

Overall, the performance of RXT in the past 1 year is driven by P/E Change. Which is more unsustainable.

-0.68%

675.80M → 671.20M

Revenue Growth

-63.78%

-27.61 → -10.00

Margin Expansion

15.59%

-0.91 → -1.06

P/E Change

-48.87%

2.21 → 1.13

Mkt Cap Growth

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Frequently Asked Questions

Is Rackspace Technology Inc (RXT) currently overvalued or undervalued?

What is Rackspace Technology Inc (RXT) fair value?

RXT'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. The fair price of Rackspace Technology Inc (RXT) is between 3.13 to 10.94 according to relative valuation methord.

How does RXT's valuation metrics compare to the industry average?

The average P/S ratio for RXT's competitors is 1.26, providing a benchmark for relative valuation. Rackspace Technology Inc Corp (RXT) exhibits a P/S ratio of 0.10, which is -92.00% above the industry average. Given its robust revenue growth of -0.68%, this premium appears unsustainable.

What is the current P/B ratio for Rackspace Technology Inc (RXT) as of Dec 15 2025?

As of Dec 15 2025, Rackspace Technology Inc (RXT) has a P/B ratio of -0.23. This indicates that the market values RXT at -0.23 times its book value.

What is the current FCF Yield for Rackspace Technology Inc (RXT) as of Dec 15 2025?

As of Dec 15 2025, Rackspace Technology Inc (RXT) has a FCF Yield of 25.07%. This means that for every dollar of Rackspace Technology Inc’s market capitalization, the company generates 25.07 cents in free cash flow.

What is the current Forward P/E ratio for Rackspace Technology Inc (RXT) as of Dec 15 2025?

As of Dec 15 2025, Rackspace Technology Inc (RXT) has a Forward P/E ratio of -23.68. This means the market is willing to pay $-23.68 for every dollar of Rackspace Technology Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Rackspace Technology Inc (RXT) as of Dec 15 2025?

As of Dec 15 2025, Rackspace Technology Inc (RXT) has a Forward P/S ratio of 0.10. This means the market is valuing RXT at $0.10 for every dollar of expected revenue over the next 12 months.

RXT Valuation