Rackspace Technology, Inc (RXT) Fair Value & Analysis
Technology · US · Market cap $1.8B
Rackspace Technology, Inc
RXT · US
Fair value as of: Jul 21, 2026
From 4 valuation models · updated 20 days ago
Share price −25.5% over the past month.
Below-average quality, and screening another 75% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case ($4.70). The favourable scenario is already priced in.
- Weak quality (36/100) and above fair value at the same time, the margin of safety is missing on both counts.
- The model range is unusually wide ($0.2420 to $4.70). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.
How to read this chart
60‑month range $0.4089 – $24.87 · fair‑value band $0.2420 – $4.70 · the $4.90 price screens above the $1.21 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 21, 2026.
Analysis
Rackspace Technology, Inc (RXT) currently trades at $4.90, while our model-based Fair Value estimate is $1.21, implying the stock looks roughly 75.3% overvalued today. The Quality Score stands at 36/100 (below-average 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: medium).
Over the trailing twelve months, Rackspace Technology, Inc generated revenue of $2.7B at a net margin of -5.4%. Revenue grew 1.9% year over year. Net debt stands at $3.2B. Fundamentals as of Jul 21, 2026
Our scenario range runs from $0.2420 (bear case) to $4.70 (bull case); at $4.90, 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 share trades about 43% below its 52-week high, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -50% fair-value upside, at -75%, RXT 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.
All 4 models by family
Widest divergence: Multiples ($3.47) versus Dividend Discount ($0.0300). Highest evidence: Gordon GGM (70).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 35 · Market factors (momentum, volatility) 65
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
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.
Full company description
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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
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.
RXT screens 75% overvalued. Compare with Microsoft Corporation →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Bronstein, Gewirtz & Grossman LLC Urges Rackspace Technology, Inc. Investors to Act: Class Action Filed Alleging Investor Harm
- Why Is Rackspace Technology (RXT) Hiring A New AI Infrastructure Leader?
- Shareholders who lost money in shares of Rackspace Technology, Inc. (NASDAQ: RXT) should contact Wolf Haldenstein Immediately
- Deadline Alert: Rackspace Technology, Inc. (RXT) Shareholders Who Lost Money Urged To Contact Glancy Prongay Wolke & Rotter LLP About Se
Peer Group
Software - Infrastructure · 368 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.
Valuation Multiples vs Software - Infrastructure median · lower = cheaper
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: the price sits above our fair-value range.
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
Insider activity: 44/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Software - Infrastructure stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Microsoft Corporation MSFT | $384.00 | $274.17 | -29% |
| Oracle Corporation ORAC | C$9.08 | C$2.94 | -68% |
| Fortinet, Inc FTNT | $160.78 | $44.96 | -72% |
| Synopsys, Inc 1SNPS | €354.50 | €93.61 | -74% |
| Block, Inc XYZ | A$114.53 | A$70.69 | -38% |
| CoreWeave, Inc CRWV | $79.94 | $44.89 | -44% |
| Range Intelligent Computing Technology Group 300442 | ¥71.60 | ¥34.00 | -53% |
| Oracle Financial Services Software Limited OFSS | ₹11,651 | ₹5,821 | -50% |
| 360 Security Technology Inc 601360 | ¥9.64 | ¥5.05 | -48% |
| One97 Communications Limited PAYTM | ₹1,342 | ₹181.50 | -86% |
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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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