RXT Valuation

Rackspace Technology Inc

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1.440

0(0.000%)1D

Overview
Forecast
Valuation
Earnings

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 Fair zone, suggesting that its current forward PS ratio of 0.13 is considered Fairly compared with the five-year average of 3.36. The fair price of Rackspace Technology Inc (RXT) is between 1.05 to 9.66 according to relative valuation methord.

Relative Value

Fair Zone

1.05-9.66

Current Price：1.44

Fair

-11.15

Trailing

Forward

11.73

EV/EBITDA

Rackspace Technology Inc. (RXT) has a current EV/EBITDA of 11.73. The 5-year average EV/EBITDA is 11.25. The thresholds are as follows: Strongly Undervalued below 7.89, Undervalued between 7.89 and 9.57, Fairly Valued between 12.93 and 9.57, Overvalued between 12.93 and 14.62, and Strongly Overvalued above 14.62. The current Forward EV/EBITDA of 11.73 falls within the Historic Trend Line -Fairly Valued range.

21.10

EV/EBIT

Rackspace Technology Inc. (RXT) has a current EV/EBIT of 21.10. The 5-year average EV/EBIT is 22.22. The thresholds are as follows: Strongly Undervalued below 9.02, Undervalued between 9.02 and 15.62, Fairly Valued between 28.83 and 15.62, Overvalued between 28.83 and 35.43, and Strongly Overvalued above 35.43. The current Forward EV/EBIT of 21.10 falls within the Historic Trend Line -Fairly Valued range.

0.13

Rackspace Technology Inc. (RXT) has a current PS of 0.13. The 5-year average PS is 0.51. The thresholds are as follows: Strongly Undervalued below -0.44, Undervalued between -0.44 and 0.03, Fairly Valued between 0.98 and 0.03, Overvalued between 0.98 and 1.46, and Strongly Overvalued above 1.46. The current Forward PS of 0.13 falls within the Historic Trend Line -Fairly Valued range.

2.29

P/OCF

Rackspace Technology Inc. (RXT) has a current P/OCF of 2.29. The 5-year average P/OCF is 11.11. The thresholds are as follows: Strongly Undervalued below -28.19, Undervalued between -28.19 and -8.54, Fairly Valued between 30.76 and -8.54, Overvalued between 30.76 and 50.41, and Strongly Overvalued above 50.41. The current Forward P/OCF of 2.29 falls within the Historic Trend Line -Fairly Valued range.

4.53

P/FCF

Rackspace Technology Inc. (RXT) has a current P/FCF of 4.53. The 5-year average P/FCF is -0.92. The thresholds are as follows: Strongly Undervalued below -65.75, Undervalued between -65.75 and -33.34, Fairly Valued between 31.49 and -33.34, Overvalued between 31.49 and 63.91, and Strongly Overvalued above 63.91. The current Forward P/FCF of 4.53 falls within the Historic Trend Line -Fairly Valued range.

Rackspace Technology Inc (RXT) has a current Price-to-Book (P/B) ratio of -0.31. Compared to its 3-year average P/B ratio of 2.08 , the current P/B ratio is approximately -114.80% higher. Relative to its 5-year average P/B ratio of 2.16, the current P/B ratio is about -114.24% higher. Rackspace Technology Inc (RXT) has a Forward Free Cash Flow (FCF) yield of approximately 15.55%. Compared to its 3-year average FCF yield of 27.84%, the current FCF yield is approximately -44.15% lower. Relative to its 5-year average FCF yield of 19.34% , the current FCF yield is about -19.59% lower.

-0.31

P/B

Median3y

2.08

Median5y

2.16

15.55

FCF Yield

Median3y

27.84

Median5y

19.34

Competitors Valuation Multiple

The average P/S ratio for RXT's competitors is 0.29, providing a benchmark for relative valuation. Rackspace Technology Inc Corp (RXT) exhibits a P/S ratio of 0.13, which is -56.60% above the industry average. Given its robust revenue growth of -2.72%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

RXT.O

Rackspace Technology Inc

Forge Global Holdings Inc

Performance Decomposition

Market capitalization of RXT decreased by 41.22% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.23 to -0.90.

The secondary factor is the Revenue Growth, contributed -2.72%to the performance.

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

-2.72%

684.90M → 666.30M

Revenue Growth

-324.11%

3.65 → -8.18

Margin Expansion

285.61%

-0.23 → -0.90

P/E Change

-41.22%