DXC Technology Company

NYSE:DXC Stock Report

Mkt Cap: US$6.5b

We’ve recently updated our valuation analysis.

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

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

DXC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA3.9x
PEG Ratio1.6x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average38.3x
DOX Amdocs
21.1x9.3%US$11.5b
GLOB Globant
50.5x26.8%US$7.3b
DAVA Endava
46.3x17.2%US$5.3b
PRFT Perficient
33.4x18.4%US$2.8b
DXC DXC Technology
9x5.6%US$6.5b

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a18.8%
 n/an/an/a

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 Ratio9x
Fair PE Ratio22.9x

Price-To-Earnings vs Fair Ratio: DXC is good value based on its Price-To-Earnings Ratio (9x) compared to the estimated Fair Price-To-Earnings Ratio (22.9x).

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.

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$28.23
US$32.54
+15.3%
11.2%US$38.00US$27.00n/a11
Feb ’24US$28.84
US$33.99
+17.9%
16.6%US$48.00US$27.00n/a11
Jan ’24US$26.50
US$34.26
+29.3%
15.7%US$48.00US$27.00n/a11
Dec ’23US$29.44
US$34.08
+15.8%
16.0%US$48.00US$27.00n/a11
Nov ’23US$28.82
US$33.58
+16.5%
15.8%US$48.00US$27.00n/a12
Oct ’23US$24.48
US$34.45
+40.7%
15.2%US$48.00US$27.00n/a11
Sep ’23US$26.70
US$35.50
+33.0%
15.3%US$48.00US$27.00n/a10
Aug ’23US$31.65
US$37.50
+18.5%
13.6%US$48.00US$30.00n/a10
Jul ’23US$29.94
US$37.90
+26.6%
13.3%US$48.00US$30.00n/a10
Jun ’23US$34.57
US$38.09
+10.2%
12.7%US$48.00US$30.00n/a11
May ’23US$28.70
US$40.64
+41.6%
14.8%US$53.00US$30.00n/a11
Apr ’23US$31.35
US$40.82
+30.2%
15.0%US$53.00US$30.00n/a11
Mar ’23US$30.09
US$42.36
+40.8%
12.0%US$53.00US$35.00n/a11
Feb ’23US$30.79
US$42.55
+38.2%
13.6%US$53.00US$35.00US$28.8411
Jan ’23US$32.19
US$44.09
+37.0%
13.0%US$53.00US$35.00US$26.5011
Dec ’22US$29.58
US$44.55
+50.6%
12.5%US$53.00US$35.00US$29.4411
Nov ’22US$33.37
US$45.27
+35.7%
12.8%US$53.00US$34.00US$28.8211
Oct ’22US$34.73
US$45.27
+30.4%
12.8%US$53.00US$34.00US$24.4811
Sep ’22US$34.86
US$45.18
+29.6%
12.9%US$53.00US$34.00US$26.7011
Aug ’22US$39.98
US$42.75
+6.9%
12.7%US$53.00US$34.00US$31.6512
Jul ’22US$40.39
US$41.15
+1.9%
12.7%US$50.00US$31.00US$29.9413
Jun ’22US$38.11
US$37.85
-0.7%
14.1%US$44.00US$26.00US$34.5713
May ’22US$32.91
US$31.77
-3.5%
17.8%US$44.00US$25.00US$28.7013
Apr ’22US$30.83
US$31.77
+3.0%
17.8%US$44.00US$25.00US$31.3513
Mar ’22US$25.96
US$30.31
+16.7%
15.1%US$40.00US$25.00US$30.0913
Feb ’22US$25.50
US$26.00
+2.0%
24.4%US$40.00US$19.00US$30.7912

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