Rackspace Technology Inc (RXT) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Rackspace Technology Inc $2.92, price $4.05, upside -27.9%, quality 36 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? No
- Good quality? No
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Rackspace Technology Inc
RXT · USWeak valuationQuality is weak on top of the rich price.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $0.4089 – $20.08 · fair‑value band $1.74 – $9.08 · the $4.05 price screens above the $2.92 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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Company profile
Rackspace Technology, Inc. operates as a hybrid cloud and artificial intelligence solutions company in the United States, the United Kingdom, and internationally. It operates through two segments, Public Cloud and Private Cloud.
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Rackspace Technology, Inc. operates as a hybrid cloud and artificial intelligence solutions company in the United States, the United Kingdom, and internationally. It operates through two segments, Public Cloud and Private Cloud. The company offers programmatic infrastructure, including hardware and services for datacenter compute, network, storage, and data protection; cloud operating systems; platform-as-a-service; private cloud solutions; and private cloud services, such as managed, professional, elastic engineering, and security services, as well as an email platform for customers and carriers. It also provides a cloud platform that offers platform-related services, including cloud strategy and architecture, platform and infrastructure migrations, and modern cloud infrastructure; cloud apps that build and manage applications within a cloud technology stack; and cloud data, which helps accelerate the adoption of modern data solutions enabling business transformation. In addition, the company offers cloud security that provides security solutions in security threat assessment and prevention; proactive threat detection and response; rapid remediation; governance, risk, and compliance assistance across multiple cloud platforms; and privacy and data protection services, including detailed access restrictions and reporting. Further, it provides Rackspace AI, a portfolio of AI services and solutions to help organizations scale AI, as well as multi-cloud strategy, data and application modernization, cloud adoption, cloud-native enablement, SaaS lifecycle management, and data management services. The company serves the financial services, government, healthcare, manufacturing, non-profit, education, SaaS and ISV, consumer goods, oil and gas, and other industries. The company was formerly known as Rackspace Corp. and changed its name to Rackspace Technology, Inc. in June 2020. Rackspace Technology, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.
Stock analysis
Rackspace Technology Inc (RXT) currently trades at $4.05, while our model-based Fair Value estimate is $2.92, implying the stock looks roughly 38.7% overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $8.84 per share, and 2 of the 3 models we run sit above the $4.05 price.
Bear case: the DCF Models group reads lowest at $0.8400, and 1 of the 3 models stay below the price. Evidence for this calculation is low.
Scenario range: $1.74 (bear) to $9.08 (bull), the price of $4.05 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 36/100 (below-average quality), in the Technology sector.
Weak Growth: Revenue is shrinking: the last year, the last three and the last five years are all negative.
Rackspace Technology Inc reported revenue of $2.7B in FY2025 versus $3.0B in FY2021, a compound −2.8%/yr. Reported net income was −$226M in FY2025.
Key figures
Market cap $1.8B · P/S ratio 0.67 · EPS (TTM) $−0.6100 · Net margin −8.4% · Return on equity −353% · Return on assets (EBIT) −13.3% · Operating margin −1.1% · Revenue (TTM) $2.7B.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 38 out of 100 (low confidence).
What moves the price
The share trades about 46% below its 52-week high and 890% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −19% fair-value upside, at −28%, RXT screens richer than that median.
Fair Value models
All 5 models by family
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Set up alert →Quality Score breakdown
Of which business quality 35 · Market factors (momentum, volatility) 49
Revenue & earnings trend
Growth Forecast
RXT screens 39% overvalued. Compare with Microsoft Corporation →
Compare Rackspace Technology Inc with another stock
Price, fair value, quality and upside side by side.
Peer Groupⓘ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.Software - Infrastructure · 378 stocks
Valuation Multiplesvs Software - Infrastructure median · lower = cheaper
Strength profile in five axes (Snowflake)
VALUE 0: the price sits above our fair-value range.
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
Context: sector, industry, market
- Is the Information Technology sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Software - Infrastructure stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Microsoft Corporation MSFT | $498.00 | $547.80 | +10% |
| Oracle Corporation ORCL | $149.20 | $117.84 | −21% |
| Palantir Technologies Inc PLTR | $184.99 | $43.02 | −77% |
| Palo Alto Networks, Inc PANW | $374.57 | $114.50 | −69% |
| CrowdStrike Holdings CRWD | $250.06 | $35.15 | −86% |
| Fortinet, Inc FTNT | $174.26 | $164.92 | −5% |
| Synopsys, Inc SNPS | $409.24 | $250.04 | −39% |
| Block, Inc XYZ | $77.53 | $101.29 | +31% |
| CoreWeave, Inc CRWV | $86.76 | $71.79 | −17% |
| NetApp, Inc NTAP | $192.91 | $157.18 | −19% |
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