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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.

  1. Fair value above price? No
  2. Good quality? No
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Technology · US · ISIN US7501021056

RT Rackspace Technology Inc logo Thin data Sep 24, 2026

Rackspace Technology Inc

RXT · US

Weak valuationQuality is weak on top of the rich price.

!Fair value $2.92 · Overvalued (−28%)
!Quality 36/100
!Weak Growth (revenue 5y −0.2 %/yr)
!Loss-making · -5.4% net margin (TTM)
Negative equity (buybacks among others) · generates free cash flow
!Trails peers (1/10)
!Narrow moat 14/100
!Insider activity 44/100
!Evidence only low, so the estimate is less certain
!The models disagree: range $1.74 to $9.08
!Weak on future: 10 out of 100

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

$20.08 $0.4089 Fair Value $2.92 Jun 2021 Sep 2026

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

Bear $1.74 Fair Value $2.92 Bull $9.08
Model Each model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence Evidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF n/a n/a $0.8100 77
Growth DCF n/a n/a $0.5200 75
5Y EBITDA Exit n/a $4.49 $11.46 72
All 5 models by family
DCF Models
FCF DCF n/a n/a $0.8100 77
5Y EBITDA Exit n/a $4.49 $11.46 72
10Y EBITDA Exit n/a $0.8400 $4.29 65
Multiples
EV/EBITDA $4.01 $8.84 $13.67 63
Growth DCF
Growth DCF n/a n/a $0.5200 75

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Quality Score breakdown

Overall quality 36/100

Of which business quality 35 · Market factors (momentum, volatility) 49

Profitability 23
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 4
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 76
Distance to the 52-week high (market factor)
Net Issuance 29
Share count: buybacks or dilution?

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Revenue & earnings trend

Growth Quality Growth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 22/100
Revenue is shrinking: the last year, the last three and the last five years are all negative.
Revenue growth 1 year
−1.9%
Revenue growth 3 years Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−4.9%
Revenue growth 5 years Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−0.2%
Start year 2020 (pandemic)
Revenue growth 8 years Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.9%
Profit margin (trend) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
0.9% (2020) → −2.5% (2025)
What shareholders gained per year We only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed

Growth Forecast

A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes This turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+33.0%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect Analysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+1.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +29.9% a year for the price and −0.8% for the forecasts.
Forecast 2026 (sales)−1.3%
Forecast 2027 (sales)+2.3%
Projected 2028 (sales)+2.3%
Projected 2029 (sales)+2.2%
Projected 2030 (sales)+2.2%

RXT screens 39% overvalued. Compare with Microsoft Corporation →

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Peer GroupHow 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

Beats the industry median on 1/10 measures
Overall it trails its industry peers.
Valuation
Quality Score 37 · Bottom 25%
Fair Value upside −28% · Below median
Profitability
Return on equity (TTM) Negative equity The company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Return on assets −1% · Below median
Net margin (TTM) −5% · Below median
Operating margin (TTM) −1% · Below median
Growth and dividend
Revenue growth 2% · Below median
Balance sheet
Debt / equity Negative equity The company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.

Valuation Multiplesvs Software - Infrastructure median · lower = cheaper

P/B Negative equity The company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
P/S (TTM) 0.67× · Cheapest 25%
P/FCF 19.9× · Pricier than median
EV/EBITDA 17.9× · Pricier than median
PEG 4.93× · Priciest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 22
FUTURE (revenue growth)10 · sector 49
PAST (return on equity)0 · sector 19
HEALTH (low debt)0 · sector 97
DIVIDEND (yield)0 · sector 33

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

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

Similar stocks

10 more Software - Infrastructure stocks, each showing price versus our Fair Value estimate.

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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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Cite: Fair Value Calculator (2026). "Rackspace Technology Inc Fair Value". https://www.fairvalue-calculator.com/stock/RXT

Frequently asked questions

Is Rackspace Technology Inc (RXT) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $2.92 versus a price of $4.05, about −28% upside (overvalued).
What is the fair value of RXT?
Our model-based fair value for Rackspace Technology Inc is $2.92 (as of Sep 24, 2026), built from audited fundamentals. The current price: $4.05.
What is the quality score of RXT?
Rackspace Technology Inc has a Quality Score of 36/100. 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 price target for Rackspace Technology Inc (RXT)?
Our model-based price target is the fair value of $2.92 (as of Sep 24, 2026) from 5 valuation models. Cautious scenario $1.74, optimistic scenario $9.08. It is a calculation from audited fundamentals, not an analyst target.
What is the Rackspace Technology Inc stock forecast for 2026?
Our models put fair value at $2.92, about −28% upside versus a price of $4.05 (overvalued). Cautious scenario $1.74, optimistic scenario $9.08. The calculation is refreshed regularly with new filings.
What is the revenue of Rackspace Technology Inc (RXT)?
Rackspace Technology Inc reported trailing-twelve-month revenue of about $2.7B (latest available figure, as of Sep 24, 2026).
What growth is priced into Rackspace Technology Inc (RXT)?
For today's price to be fair in a discounted-cash-flow model, Rackspace Technology Inc would have to grow free cash flow by +33.0 % per year for five years (discount rate 13.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -0.2 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of RXT use?
Our models discount Rackspace Technology Inc at 13.7 %: a base by market capitalisation (small), damped by beta 3.05, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Rackspace Technology Inc that is +33.0 % per year a year over ten years, using the same discount rate (13.7 %) and the same formula as our fair value.
How much growth has Rackspace Technology Inc (RXT) delivered so far?
Over the past 5 years revenue at Rackspace Technology Inc grew -0.2 % a year. The price currently implies +33.0 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Rackspace Technology Inc (RXT) growing?
The median revenue growth in the sector is +8.3 % a year. That is the yardstick for the growth priced into Rackspace Technology Inc (+33.0 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Rackspace Technology Inc (RXT)?
The free-cash-flow yield on the price is 9.37 %: that much free cash flow Rackspace Technology Inc produces per unit of market value. When it exceeds the discount rate of our models (13.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Rackspace Technology Inc (RXT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Rackspace Technology Inc it is $2.92 per share (as of Sep 24, 2026), against a price of $4.05. It is the blended result of 5 valuation models (cash flow, earnings, asset, dividend).
Is Rackspace Technology Inc stock overvalued or undervalued in 2026?
As of Sep 24, 2026, RXT trades above its calculated fair value: price $4.05, fair value $2.92, a gap of about −28% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RXT?
No. The price is what the market pays today ($4.05); the fair value is what the company's own numbers justify ($2.92). For Rackspace Technology Inc the two are $1.13 per share apart. That gap is exactly why we show both numbers side by side.
How much is Rackspace Technology Inc worth?
The market values Rackspace Technology Inc at about $1.8B (market capitalisation, as of Sep 24, 2026). Per share that is $4.05; our models calculate a fair value of $2.92 per share.
What do the bullish and bearish scenarios say about RXT?
Our models span a range for Rackspace Technology Inc: cautious scenario $1.74, base $2.92, optimistic $9.08 per share (as of Sep 24, 2026, price $4.05). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of RXT?
The PEG ratio of Rackspace Technology Inc is 4.93 (P/E divided by earnings growth, as of Sep 24, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Rackspace Technology Inc (RXT)?
Balance-sheet figures for Rackspace Technology Inc (as of Sep 24, 2026): negative equity, so no return on equity and no debt-to-equity ratio. They feed the Quality Score of 36/100, which measures business quality independently of the share price.
How far is RXT from its 52-week high?
Rackspace Technology Inc trades at $4.05, about 46% below its 52-week high of $7.53 and 890% above the low of $0.4089 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $2.92 is for.
Which stocks are comparable to Rackspace Technology Inc?
From the same area (Technology) we also value Microsoft Corporation, Oracle Corporation, Palantir Technologies Inc, Palo Alto Networks, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Rackspace Technology Inc stock attractive at the current price?
The data as of Sep 24, 2026: price $4.05, calculated fair value $2.92 (−28%), Quality Score 36/100, from 5 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RXT calculated?
We run Rackspace Technology Inc through 5 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $2.92, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Rackspace Technology Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Rackspace Technology Inc (RXT)?
The closing price on Sep 23, 2026 was $4.05. Our model-based fair value is $2.92, about −28% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Rackspace Technology Inc right now?
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 ($1.74 to $9.08). The outcome hinges heavily on assumptions, so read the point estimate with caution. Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.

Key figures of Rackspace Technology Inc

How large is the market capitalisation of Rackspace Technology Inc (RXT)?
The market capitalisation of Rackspace Technology Inc is $1.8B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Rackspace Technology Inc (RXT)?
The price-to-sales ratio of Rackspace Technology Inc is 0.67 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Rackspace Technology Inc (RXT)?
Earnings per share at Rackspace Technology Inc are $−0.6100. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Rackspace Technology Inc (RXT)?
The net margin of Rackspace Technology Inc is −8.4% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Rackspace Technology Inc (RXT)?
The return on equity (ROE) of Rackspace Technology Inc is −353% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Rackspace Technology Inc (RXT)?
On an EBIT basis the return on assets of Rackspace Technology Inc is −13.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Rackspace Technology Inc (RXT)?
The operating margin of Rackspace Technology Inc is −1.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Rackspace Technology Inc (RXT)?
Revenue at Rackspace Technology Inc is growing +1.9% versus a year earlier (3y avg −4.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How much net debt does Rackspace Technology Inc (RXT) carry?
The net debt of Rackspace Technology Inc is $3.2B (fiscal year 2025, ≈ 35.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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