DXC Technology Company

NYSE:DXC Stock Report

Market Cap: US$3.5b

DXC Technology Valuation

Is DXC 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 DXC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DXC ($19.59) is trading below our estimate of fair value ($140.03)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DXC. This is calculated by dividing DXC's market cap by their current earnings.
What is DXC's PE Ratio?
PE Ratio147.8x
EarningsUS$24.00m
Market CapUS$3.55b

Price to Earnings Ratio vs Peers

How does DXC's PE Ratio compare to its peers?

The above table shows the PE ratio for DXC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average66.9x
ASGN ASGN
20.4x11.3%US$3.7b
DOX Amdocs
19.2x15.5%US$9.5b
DAVA Endava
175.1x42.2%US$1.6b
GLOB Globant
53.1x20.8%US$9.0b
DXC DXC Technology
147.8x60.4%US$3.5b

Price-To-Earnings vs Peers: DXC is expensive based on its Price-To-Earnings Ratio (147.8x) compared to the peer average (66.9x).

Price to Earnings Ratio vs Industry

How does DXC's PE Ratio compare vs other companies in the US IT Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TAOP Taoping
1.1xn/aUS$2.35m
GTCH GBT Technologies
0.1xn/aUS$1.68m
DLTI DLT Resolution
0.3xn/aUS$228.03k
TMNA Agri-Fintech Holdings
0.0004xn/aUS$129.25k
DXC 147.8xIndustry Avg. 44.8xNo. of Companies5PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DXC is expensive based on its Price-To-Earnings Ratio (147.8x) compared to the US IT industry average (44.8x).

Price to Earnings Ratio vs Fair Ratio

What is DXC'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.

DXC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio147.8x
Fair PE Ratio46.5x

Price-To-Earnings vs Fair Ratio: DXC is expensive based on its Price-To-Earnings Ratio (147.8x) compared to the estimated Fair Price-To-Earnings Ratio (46.5x).

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 DXC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$19.59
US$22.11
+12.9%
11.0%US$26.00US$18.98n/a9
Nov ’25US$20.02
US$19.70
-1.6%
6.4%US$22.00US$18.00n/a10
Oct ’25US$20.07
US$19.70
-1.9%
6.4%US$22.00US$18.00n/a10
Sep ’25US$20.67
US$19.86
-3.9%
8.9%US$24.50US$18.00n/a11
Aug ’25US$19.89
US$18.09
-9.1%
13.7%US$24.50US$15.00n/a11
Jul ’25US$18.62
US$18.09
-2.9%
13.7%US$24.50US$15.00n/a11
Jun ’25US$15.55
US$18.19
+17.0%
16.9%US$24.50US$15.00n/a12
May ’25US$19.00
US$22.61
+19.0%
5.3%US$24.50US$21.00n/a14
Apr ’25US$21.03
US$22.68
+7.9%
5.4%US$24.50US$21.00n/a15
Mar ’25US$21.69
US$22.73
+4.8%
5.5%US$24.50US$21.00n/a14
Feb ’25US$21.65
US$22.77
+5.2%
5.0%US$24.50US$21.00n/a13
Jan ’25US$22.87
US$23.67
+3.5%
12.7%US$32.70US$21.00n/a13
Dec ’24US$23.64
US$23.67
+0.1%
12.7%US$32.70US$21.00n/a13
Nov ’24US$20.29
US$24.75
+22.0%
12.6%US$32.70US$21.00US$20.0213
Oct ’24US$20.83
US$25.58
+22.8%
11.2%US$30.00US$21.00US$20.0712
Sep ’24US$21.11
US$25.58
+21.2%
11.2%US$30.00US$21.00US$20.6712
Aug ’24US$27.65
US$29.67
+7.3%
12.6%US$35.00US$25.00US$19.8912
Jul ’24US$26.72
US$29.82
+11.6%
13.3%US$35.00US$25.00US$18.6211
Jun ’24US$24.79
US$29.82
+20.3%
13.3%US$35.00US$25.00US$15.5511
May ’24US$23.87
US$32.55
+36.3%
11.2%US$38.00US$27.00US$19.0011
Apr ’24US$25.56
US$32.55
+27.3%
11.2%US$38.00US$27.00US$21.0311
Mar ’24US$27.81
US$32.55
+17.0%
11.2%US$38.00US$27.00US$21.6911
Feb ’24US$28.84
US$33.99
+17.9%
16.6%US$48.00US$27.00US$21.6511
Jan ’24US$26.50
US$34.26
+29.3%
15.7%US$48.00US$27.00US$22.8711
Dec ’23US$29.44
US$34.08
+15.8%
16.0%US$48.00US$27.00US$23.6411
Nov ’23US$28.82
US$34.08
+18.3%
15.5%US$48.00US$27.00US$20.2911

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

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