NYSE
DXC
Last Price
US $9.16
KEY FIGURES
MKT CAP
$1.5B
EPS
TTM
$0.10
PEG
TTM
N/M
P/E
TTM
89.11x
P/S
TTM
0.13x
YIELD
0.00%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
12.88%
Return on equity
ROIC: 4.72%
Valuation History
8.1X
Price to Earnings
EV/EBITDA: 2.7X
Cash flow
Profit margin
-4.91%
(FY vs FY)
EBITDA Y/Y
-11.31%
(FY vs FY)
Cash flow Y/Y
-
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $9.16
47.71%
Default assumptions
EBITDA Multiple
Fair Value
Market $9.16
696.62%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
DXC Technology Company cash flow to debt ratio of 29.39% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
DXC Technology Company's free cash flow has increased 26.03% from $822.00M last year to $1.04G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
DXC Technology Company's debt to equity ratio is 1.44, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
DXC Technology Company's debt has increased relative to shareholder equity from 1.41 last year to 1.44 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
DXC Technology Company has a net debt to EBITDA ratio of 1.48x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial risk - ICR.
DXC Technology Company's interest coverage ratio is 1.19, which means that the company struggles to meet interest obligations, signaling financial risk.
Financial risk - Profit margin growth.
DXC Technology Company's profit margin has decreased (-95.29%) in the last year from 3.02% to 0.14%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
DXC Technology Company's short-term assets of $5.36G exceed its short-term liabilities of $3.94G
Decreasing performance - ROA.
DXC Technology Company's return on assets of 0.14% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
DXC Technology Company's return on equity of 0.58%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
DXC Technology Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
DXC Technology Company had positive net income in 4.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
DXC Technology Company has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
DXC Technology Company has a free cash flow yield of 69.78%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
DXC Technology Company's yearly earnings has decreased -95.37% since last year from $389.00M to $18.00M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
DXC Technology Company's yearly revenue has decreased -1.76% since last year from $12.87G to $12.64G, signaling decreasing performance
Decreasing performance - ROIC.
ROIC 0.23% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Decreasing performance - 3-year revenue CAGR.
DXC Technology Company's 3-year revenue CAGR of -4.31% is negative, indicating declining revenue over the past 3 years
Decreasing performance - Revenue consistency.
DXC Technology Company had revenue growth in only 1.00 out of 5 years, indicating inconsistent revenue performance
Increasing performance - ROE consistency.
DXC Technology Company had positive ROE in 4.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
DXC Technology Company is undervalued relative to its fair value price of 13.53 based on Discounted Cash Flow model
Overvalued - Earnings yield.
DXC Technology Company has an earnings yield of 1.12%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Undervalued - EBITDA valuation.
DXC Technology Company is undervalued relative to its fair value price of 72.97 based on EBITDA multiple model
Undervalued - EV/EBITDA.
DXC Technology Company has an EV/EBITDA ratio of 2.36x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
DXC Technology Company has no meaningful EPS growth rate; PEG ratio cannot be computed.
Undervalued - P/B ratio.
DXC Technology Company has a price-to-book ratio of 0.50x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
DXC Technology Company has a price-to-sales ratio of 0.13x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue