DXC Technology Company

DB:2XT Stock Report

Market Cap: €3.6b

DXC Technology Valuation

Is 2XT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2XT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2XT (€19) is trading below our estimate of fair value (€146.79)

Significantly Below Fair Value: 2XT is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2XT?

Key metric: As 2XT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2XT. This is calculated by dividing 2XT's market cap by their current earnings.
What is 2XT's PE Ratio?
PE Ratio148.5x
EarningsUS$24.00m
Market CapUS$3.77b

Price to Earnings Ratio vs Peers

How does 2XT's PE Ratio compare to its peers?

The above table shows the PE ratio for 2XT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.9x
BC8 Bechtle
16.6x9.9%€4.1b
NA9 Nagarro
23.6x17.1%€1.3b
SANT Kontron
12.5x19.1%€1.1b
COK Cancom
18.9x12.8%€765.2m
2XT DXC Technology
148.5x60.4%€3.8b

Price-To-Earnings vs Peers: 2XT is expensive based on its Price-To-Earnings Ratio (148.5x) compared to the peer average (17.9x).

Price to Earnings Ratio vs Industry

How does 2XT's PE Ratio compare vs other companies in the DE IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
2XT 148.5xIndustry Avg. 17.9xNo. of Companies3PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2XT is expensive based on its Price-To-Earnings Ratio (148.5x) compared to the European IT industry average (18.3x).

Price to Earnings Ratio vs Fair Ratio

What is 2XT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2XT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio148.5x
Fair PE Ratio40.6x

Price-To-Earnings vs Fair Ratio: 2XT is expensive based on its Price-To-Earnings Ratio (148.5x) compared to the estimated Fair Price-To-Earnings Ratio (40.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2XT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€19.00
€20.75
+9.2%
11.0%€24.40€17.81n/a9
Nov ’25€18.22
€18.09
-0.7%
6.4%€20.21€16.53n/a10
Oct ’25€18.56
€17.77
-4.3%
6.4%€19.84€16.23n/a10
Sep ’25€18.60
€18.19
-2.2%
8.9%€22.44€16.49n/a11
Aug ’25€18.79
€16.74
-10.9%
13.7%€22.67€13.88n/a11
Jul ’25€17.71
€16.74
-5.4%
13.7%€22.67€13.88n/a11
Jun ’25€13.94
€16.75
+20.2%
16.9%€22.56€13.81n/a12
May ’25€18.84
€21.23
+12.7%
5.3%€23.00€19.71n/a14
Apr ’25€19.42
€20.87
+7.5%
5.4%€22.54€19.32n/a15
Mar ’25€20.18
€21.01
+4.1%
5.5%€22.64€19.41n/a14
Feb ’25€20.32
€20.92
+3.0%
5.0%€22.51€19.30n/a13
Jan ’25€20.55
€22.13
+7.7%
12.7%€30.57€19.64n/a13
Dec ’24€21.25
€22.13
+4.1%
12.7%€30.57€19.64n/a13
Nov ’24€19.01
€23.42
+23.2%
12.6%€30.95€19.87€18.2213
Oct ’24€19.30
€23.59
+22.2%
11.2%€27.66€19.36€18.5612
Sep ’24€19.31
€23.59
+22.2%
11.2%€27.66€19.36€18.6012
Aug ’24€25.03
€26.39
+5.4%
12.6%€31.13€22.24€18.7912
Jul ’24€24.56
€27.57
+12.3%
13.3%€32.36€23.12€17.7111
Jun ’24€23.02
€27.57
+19.8%
13.3%€32.36€23.12€13.9411
May ’24€21.59
€30.30
+40.3%
11.2%€35.38€25.14€18.8411
Apr ’24€23.23
€30.30
+30.5%
11.2%€35.38€25.14€19.4211
Mar ’24€26.09
€30.30
+16.1%
11.2%€35.38€25.14€20.1811
Feb ’24€26.36
€31.28
+18.7%
16.6%€44.17€24.85€20.3211
Jan ’24€24.98
€32.25
+29.1%
15.7%€45.17€25.41€20.5511
Dec ’23€28.33
€34.21
+20.8%
16.0%€48.18€27.10€21.2511
Nov ’23€28.95
€34.89
+20.5%
15.5%€49.13€27.64€19.0111

Analyst Forecast: Target price is less than 20% higher than the current share price.

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