DXC Technology Company

LSE:0I6U Stock Report

Market Cap: US$2.4b

DXC Technology Valuation

Is 0I6U undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 0I6U when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$27.80
Fair Value
52.1% undervalued intrinsic discount
8
Number of Analysts

Below Fair Value: 0I6U ($13.33) is trading below our estimate of fair value ($27.8)

Significantly Below Fair Value: 0I6U is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0I6U?

Key metric: As 0I6U is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0I6U. This is calculated by dividing 0I6U's market cap by their current earnings.
What is 0I6U's PE Ratio?
PE Ratio6.3x
EarningsUS$379.00m
Market CapUS$2.37b

Price to Earnings Ratio vs Peers

How does 0I6U's PE Ratio compare to its peers?

The above table shows the PE ratio for 0I6U vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18x
CCC Computacenter
13.8x5.49%UK£2.4b
SCT Softcat
25.2x8.73%UK£3.2b
KNOS Kainos Group
24.1x16.66%UK£857.0m
FDM FDM Group (Holdings)
8.7x-10.82%UK£134.9m
0I6U DXC Technology
6.3x-8.26%US$2.4b

Price-To-Earnings vs Peers: 0I6U is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (18x).

Price to Earnings Ratio vs Industry

How does 0I6U's PE Ratio compare vs other companies in the European IT Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0I6U 6.3xIndustry Avg. 18.9xNo. of Companies24PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0I6U is good value based on its Price-To-Earnings Ratio (6.3x) compared to the European IT industry average (18.9x).

Price to Earnings Ratio vs Fair Ratio

What is 0I6U'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.

0I6U PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.3x
Fair PE Ratio29.8x

Price-To-Earnings vs Fair Ratio: 0I6U is good value based on its Price-To-Earnings Ratio (6.3x) compared to the estimated Fair Price-To-Earnings Ratio (29.8x).

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 0I6U forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$13.33
US$15.75
+18.15%
6.15%US$18.00US$15.00n/a8
Aug ’26US$12.73
US$16.00
+25.74%
6.25%US$18.00US$15.00n/a8
Jul ’26US$15.88
US$17.29
+8.86%
13.65%US$23.00US$14.00n/a10
Jun ’26US$15.06
US$17.11
+13.63%
14.17%US$23.00US$14.00n/a9
May ’26US$15.69
US$21.33
+35.97%
19.26%US$27.00US$15.00n/a9
Apr ’26US$17.35
US$23.11
+33.21%
10.49%US$27.00US$18.00n/a9
Mar ’26US$18.23
US$23.56
+29.22%
7.25%US$27.00US$22.00n/a9
Feb ’26US$21.84
US$22.56
+3.28%
9.37%US$26.00US$19.00n/a9
Jan ’26US$20.30
US$22.10
+8.86%
10.42%US$26.00US$18.98n/a10
Dec ’25US$22.44
US$22.10
-1.52%
10.42%US$26.00US$18.98n/a10
Nov ’25US$19.97
US$19.70
-1.35%
6.45%US$22.00US$18.00n/a10
Oct ’25US$19.93
US$19.70
-1.15%
6.45%US$22.00US$18.00n/a10
Sep ’25US$20.59
US$19.86
-3.53%
8.86%US$24.50US$18.00n/a11
Aug ’25US$20.17
US$18.09
-10.32%
13.68%US$24.50US$15.00US$12.7311
Jul ’25US$18.84
US$18.09
-3.96%
13.68%US$24.50US$15.00US$15.8811
Jun ’25US$15.41
US$18.19
+18.02%
16.88%US$24.50US$15.00US$15.0612
May ’25US$19.19
US$22.61
+17.83%
5.25%US$24.50US$21.00US$15.6914
Apr ’25US$21.11
US$22.68
+7.45%
5.41%US$24.50US$21.00US$17.3515
Mar ’25US$21.54
US$22.73
+5.53%
5.52%US$24.50US$21.00US$18.2314
Feb ’25US$21.81
US$22.77
+4.40%
4.99%US$24.50US$21.00US$21.8413
Jan ’25US$22.84
US$23.67
+3.63%
12.69%US$32.70US$21.00US$20.3013
Dec ’24US$23.50
US$23.67
+0.71%
12.69%US$32.70US$21.00US$22.4413
Nov ’24US$20.18
US$24.75
+22.66%
12.55%US$32.70US$21.00US$19.9713
Oct ’24US$20.81
US$25.58
+22.94%
11.22%US$30.00US$21.00US$19.9312
Sep ’24US$21.01
US$25.58
+21.76%
11.22%US$30.00US$21.00US$20.5912
Aug ’24US$27.62
US$29.67
+7.41%
12.64%US$35.00US$25.00US$20.1712
AnalystConsensusTarget
Consensus Narrative from 8 Analysts
US$15.85
Fair Value
15.9% undervalued intrinsic discount
8
Number of Analysts

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/08/07 01:16
End of Day Share Price 2025/08/07 00:00
Earnings2025/06/30
Annual Earnings2025/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

DXC Technology Company is covered by 35 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Darrin PellerBarclays
Georgios KertsosBerenberg
Keith BachmanBMO Capital Markets Equity Research