DXC Technology Company

NYSE:DXC Stock Report

Market Cap: US$3.8b

DXC Technology Valuation

Is DXC 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 ($21.49) is trading below our estimate of fair value ($140.96)

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 barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DXC. This is calculated by dividing DXC's market cap by their current revenue.
What is DXC's PS Ratio?
PS Ratio0.3x
SalesUS$13.26b
Market CapUS$3.77b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DXC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
ASGN ASGN
0.9x4.2%US$3.7b
KD Kyndryl Holdings
0.5x1.6%US$7.9b
DAVA Endava
2x9.6%US$1.8b
DOX Amdocs
1.9x3.7%US$9.7b
DXC DXC Technology
0.3x-2.0%US$3.8b

Price-To-Sales vs Peers: DXC is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

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

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.2.6x9.9%
DXC DXC Technology
 0.3x-2.0%US$3.77b
KD Kyndryl Holdings
0.5x1.6%US$7.92b
RXT Rackspace Technology
0.2x0.4%US$509.75m
DXC 0.3xIndustry Avg. 2.6xNo. of Companies27PS02.44.87.29.612+
27 CompaniesEstimated GrowthMarket Cap
Industry Avg.2.6x14.5%
DXC DXC Technology
 0.3x60.4%US$3.77b
No more companies

Price-To-Sales vs Industry: DXC is good value based on its Price-To-Sales Ratio (0.3x) compared to the US IT industry average (2.6x).

Price to Sales Ratio vs Fair Ratio

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

DXC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: DXC is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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$21.49
US$22.10
+2.8%
10.4%US$26.00US$18.98n/a10
Dec ’25US$22.50
US$22.10
-1.8%
10.4%US$26.00US$18.98n/a10
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$21.00US$22.5013
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 05:07
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

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 here.

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 .

Analyst Sources

DXC Technology Company is covered by 36 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ishan MajumdarBaptista Research
Darrin PellerBarclays
Georgios KertsosBerenberg