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DXC Technology Company (DXC) Fair Value & Analysis

Technology · US · Market cap $1.4B

DT DXC Technology Company logo DXC Technology Company DXC · US
Price$10.84
Fair Value$4.00
Upside-63.1%
Quality54/100
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Weak Growth
Thin margins · 0.1% net margin
Moderate debt · generates free cash flow
Trails peers (5/14)
Narrow moat 18/100
Evidence: High Range $3.01 – $5.00 Share as image

Fair value as of: Jul 16, 2026

From 24 valuation models · updated 25 days ago

Fair value updated Jul 16, 2026, revised from $5.21 to $4.00 (−23.3%) since Jun 24, 2026. Share price +13.2% over the past month.

A solid business, but screening 63% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($5.00). The favourable scenario is already priced in.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

$43.42 $8.22 Fair Value $4.00 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $8.22 – $43.42 · fair‑value band $3.01 – $5.00 · the $10.84 price screens above the $4.00 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

DXC Technology Company (DXC) currently trades at $10.84, while our model-based Fair Value estimate is $4.00, implying the stock looks roughly 63.1% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, DXC Technology Company generated revenue of $12.6B at a net margin of 0.1%. Revenue declined 1.2% year over year. It earns a return on equity of 0.8%. Net debt stands at $2.5B. Fundamentals as of Jul 16, 2026

Our scenario range runs from $3.01 (bear case) to $5.00 (bull case); at $10.84, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 34% below its 52-week high and 37% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at -63%, DXC screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $48.59 $63.97 $84.14 80
Residual Income $11.46 $10.18 $6.61 76
Rev-Margin DCF $23.51 $31.96 $42.01 74
All 24 models by family
DCF Models
FCF DCF $47.36 $63.79 $86.57 38
Owner Earnings $43.65 $58.97 $80.21 31
5Y Revenue Exit $23.51 $30.73 $39.72 39
5Y EBITDA Exit $58.35 $90.99 $129.39 41
5Y P/E Exit $16.59 $18.77 $20.95 38
10Y Revenue Exit $33.05 $40.75 $48.93 36
10Y EBITDA Exit $53.10 $77.42 $105.77 37
10Y P/E Exit $29.48 $33.47 $37.03 35
Earnings-Based
Graham-Dodd $0.7600 $1.47 $1.84 54
EPV $0.4800 59
Dividend Discount
Gordon GGM $0.1000 $0.1300 $0.1500 70
DDM Multi-Stage $0.1000 $0.1300 $0.1600 61
Multiples
P/E Multiple $1.67 $2.22 $2.78 63
P/S Multiple $1.42 $1.89 $2.36 58
P/B Multiple $1.42 $1.89 $2.36 55
EV/EBIT $14.01 $21.17 $28.33 53
EV/EBITDA $77.82 $106.25 $134.68 54
EV/Revenue $7.00 $13.21 $19.42 43
Asset-Based
NCAV (Graham) $9.07 $12.16 $18.15 50
Growth DCF
Growth DCF $48.59 $63.97 $84.14 80
Rev-Margin DCF $23.51 $31.96 $42.01 74
Economic Profit
Residual Income $11.46 $10.18 $6.61 76
ROIC Compounder $0.4800 72
Growth Earnings
Growth-Adj P/E $1.20 $1.72 $2.23 68

Widest divergence: DCF Models ($40.75) versus Dividend Discount ($0.1300). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $12.6B
Revenue growth (YoY) -1.2%
Net margin 0.1%
Return on equity 0.8%
Free cash flow $1.0B FY2026
P/E ratio 86.0
More key figures
Operating margin -2.2%
EPS (TTM) $0.1000
EPS growth (YoY) +96.8%
Net debt $2.5B FY2026

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 52 · Market factors (momentum, volatility) 25

Profitability 30
Margins and returns on capital today
Quality Growth 20
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 24
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 42
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 23
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions in the United States, the United Kingdom, the Rest of Europe, Australia, and internationally. It operates through three segments: Consulting & Engineering Services, Global Infrastructure Services, and Insurance Software & Services.

Full company description

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions in the United States, the United Kingdom, the Rest of Europe, Australia, and internationally. It operates through three segments: Consulting & Engineering Services, Global Infrastructure Services, and Insurance Software & Services. The Consulting & Engineering Services segment delivers software engineering, consulting, and custom and enterprise application solutions; focusing on AI and data analytics to enhance operations and support digital transformation across industries such as finance, automotive, manufacturing, healthcare, life sciences, travel, and the public sector. The Global Infrastructure Services segment provides design, migration, and management of data center, mainframe, cloud, and network environments. This segment also provides cross-industry business process services, which streamline clients' core enterprise functions such as finance, HR, procurement, and customer service. The Insurance Software & Services segment offers software and business process services for life and wealth, property and casualty, and reinsurance providers to modernize and digitally transform their operations. The company markets and sells its products through a direct sales force to commercial businesses and public sector enterprises. DXC Technology Company has a multi-year global alliance with Anthropic to bring AI into mission-critical enterprise systems. DXC Technology Company was founded in 1959 and is headquartered in Ashburn, Virginia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

DXC Technology Company reported revenue of $12.6B in FY2026 versus $16.3B in FY2022, a compound −6.1%/yr. Reported net income was $18.0M in FY2026, compounding −60.2%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
$12.6B
Latest YoY
−1.8%
Avg. growth/yr (3Y)
−4.3%
Avg. growth/yr (5Y)
−4.9%
Avg. growth/yr (40Y)
+7.0%
Revenue −6.1%/yr
FY22 $16.3B
FY23 $14.4B
FY24 $13.7B
FY25 $12.9B
FY26 $12.6B
Net income −60.2%/yr
FY22 $718M
FY23 −$568M
FY24 $91.0M
FY25 $389M
FY26 $18.0M

DXC screens 63% overvalued. Compare with International Business Machines Corporation →

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Cite: Fair Value Calculator (2026). "DXC Technology Company Fair Value". https://www.fairvalue-calculator.com/stock/DXC

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Information Technology Services · 480 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Below median
Fair Value upside −63% · Bottom 25%
Return on equity (TTM) 1% · Below median
Return on assets 2% · Below median
Net margin (TTM) 0% · Bottom 25%
Operating margin (TTM) -2% · Bottom 25%
Revenue growth -1% · Below median
Debt / equity 1.00× · Higher than 75% of peers

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 86.0× · Pricier than 75% of peers
P/B 0.47× · Cheaper than 75% of peers
P/S (TTM) 0.11× · Cheaper than 75% of peers
P/FCF 1.3× · Cheaper than median
EV/EBITDA 1.8× · Cheaper than 75% of peers
PEG 0.49× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 20
FUTURE 0 · sector 29
PAST 3 · sector 36
HEALTH 50 · sector 97
DIVIDEND 0 · sector 37

VALUE 0: the price sits above our fair-value range.

Insider activity: 66/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.92 $143.90 -39%
Accenture plc ACNN 2,460 MXN 250.95 MXN -90%
Infosys Limited INFY ₹1,156 ₹1,457 +26%
HCL Technologies Limited HCLTECH ₹1,204 ₹1,230 +2%
Wipro Limited WIPRO ₹178.43 ₹226.81 +27%
Tech Mahindra Limited TECHM ₹1,455 ₹1,086 -25%
Samsung SDS Co 018260 199,300 KRW 196,390 KRW -1%
Persistent Systems Limited PERSISTENT ₹5,059 ₹2,364 -53%
Hyundai Autoever Corporation 307950 393,000 KRW 133,088 KRW -66%
Coforge Limited COFORGE ₹1,541 ₹702.84 -54%

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Frequently asked questions

Is DXC Technology Company (DXC) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $4.00 versus a price of $10.84, about −63% (overvalued).
What is the fair value of DXC?
Our model-based fair value for DXC Technology Company is $4.00 (as of Jul 16, 2026), built from audited fundamentals. The current price is $10.84.
What is the quality score of DXC?
DXC Technology Company has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of DXC Technology Company (DXC)?
DXC Technology Company reported trailing-twelve-month revenue of about $12.6B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of DXC?
The net profit margin of DXC Technology Company is about 0.1%, meaning it keeps roughly 0.1% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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