QualityDipStocks / Technology · IT services
DXC Technology Company DXC
Outside our quality screen, so we don’t track its dips. It’s 9% below its 52-week high.
Outside our quality screen. No fair value estimate for now: the model’s result is too extreme to stand behind.
Worth knowing
- Share count down 10% in 2 years
From the data on this page, as of the last close. How we pick these
- Fair value est.
- n/a
- Market Value
- forming
- Off 52-wk high
- −9%
- Risk vs market
- Lowbeta 0.50
4 bullish · 5 bearish See why
Repriced or dip?
Near its high
The price is 9% below its 52-week high (Oct 26), but the business held up: shares outstanding fewer shares, each owns more, net cash (cash minus debt) +3.6% of market cap since the high, revenue growth rate −0.4 pts.
Some numbers held up (shares outstanding fewer shares, each owns more, net cash (cash minus debt) +3.6% of market cap since the high, revenue growth rate −0.4 pts), others slipped (free cash flow −17.7%, earnings per share −7.3%). The price is 9% below its 52-week high.
The price is 9% below its 52-week high, and the business changed too: free cash flow −17.7%, earnings per share −7.3%.
Within 10% of its 52-week high, so there is no dip to judge yet.
Data-based read, not advice.
Priced in
How much growth the market assumed at the 52-week high, the low and today (a reverse DCF).
52-wk high: P/E 21.9×; 52-wk low: P/E 81.6×; now: P/E 21.3×.
| High | Low | Now | |
|---|---|---|---|
| Price | $16.30Oct 26 | $8.22May 13 | $14.76 |
| Implied growth | below −30% | below −30% | below −30% |
| P/E | 21.9× | 81.6× | 21.3× |
| P/FCF | 2.2× | 1.4× | 2.3× |
| EV/Sales | 0.3× | 0.3× | 0.3× |
What this means: a lower P/E than at the high means you pay less for each dollar of profit than buyers did then.
How it’s computed
Reverse DCF: the same 10-year free-cash-flow model as our fair value estimate (9.5% discount rate, growth for years 1–5 fading to 3% by year 10, 3% after), solved for the growth that makes it equal the market value at each price. For the high and the low we use only the filings that were public on that day, so nothing from a later report leaks back. Market value = that close × diluted shares. P/E = market value / 12-month net income; Price / FCF = market value / 12-month free cash flow; EV / Sales = (market value + debt − cash) / 12-month revenue. Hidden when the share count moved over 20% (split, merger), free cash flow is negative, or the company reports in another currency.
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
Estimate unreliable for DXC: the model gives 583% above the price, more than we can stand behind (usually peak-cycle cash flow, heavy debt, or cash flows that include customer or loan balances). We’d rather show nothing than a made-up number.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much DXC moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 4.5× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.50
- Volatility
- 58% vs 13% SPY
- Correlation SPY
- 0.11
- Correlation QQQ
- −0.03
How it ranks
Where DXC stands vs every one of the 1,996 stocks we cover that has the number. Longer bar = better.
Top quarter on 2 of 5 measures
- Free cash flow yield43% · free cash flow vs market capTop 1%of 1,391
- Dividends + buybacks yield11% · cash paid out or used to retire shares, vs market capTop 5%of 1,836
- Revenue growth, last 12 months−2.8% · vs the 12 months beforeLowest 7%of 1,814
- Operating margin6.8% · of sales kept as operating profitLowest 31%of 1,288
- Return on invested capital12% · profit per dollar of capitalTop 42%of 838
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
FCF value $170.06
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
ValuationFree-cash-flow yield of 43.1% (price / FCF 2.3×): $1.0B of free cash in the last 12 months.
Cash returnsShare count down 9.6% in a year: $257M of buybacks over 12 months.
ValuationEV/EBITDA of 2.0×: modest for what the business earns before interest, tax and depreciation.
ValuationP/E of 21.3× vs a 33.0× median for the 220 Technology companies we cover.
Top bearish points 5 of 5
GrowthDiluted EPS fell 95% to $0.10 in FY2026.
Balance sheetNet debt of $1.5B, 61% of the market cap (Sep 30, 2026).
Cash returnsFree cash flow fell 22% over the last 12 months vs the 12 months before.
GrowthSales shrank 4% a year from FY2023 to FY2026.
QualityDoesn’t pass our quality screen: ROE under 12% and ROIC under 10%; sales down vs the year-ago quarter.
All fundamentals
P/E 21.3 · FCF yield 43.1% · ROE 4%
Valuation
- P/E
- 21.3×Technology median 33.0×
- Price / FCF
- 2.3×
- FCF yield
- 43.1%
- EV / EBITDA
- 2.0×
- Price / sales
- 0.19×
- Price / book
- 0.78×
- Market cap
- $2.4Bprice × diluted shares
- Enterprise value
- $3.9B
Growth
- Revenue, 12 months
- $12.4B
- Sales growth, 12 months
- −2.8%vs the 12 months before
- Sales growth, 3 yrs
- −4.3%/yrfrom FY2023
- Diluted EPS, 12 months
- $0.70
- EPS growth, last FY
- −95.2%
- Net income, 12 months
- $112M
- Net income growth
- −70%12 months vs before
Profitability
- Gross margin
- n/agross profit isn't reported (common for service and financial companies)
- Operating margin
- 6.8%
- Net margin
- 0.9%
- FCF margin
- 8.3%
- Return on equity
- 4%
- Return on invested capital
- 12%
Balance sheet
- Cash & short-term inv.
- $1.6B
- Total debt
- $3.1B
- Net cash
- −$1.5B
- Debt / equity
- 1.00×
- Interest coverage
- 3.8×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $1.0B
- FCF growth, 12 months
- −22%
- Dividend yield
- n/ano dividend payments tagged
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- $257M10.7% of market cap
- Share count, 1 year
- −9.6%diluted shares vs a year ago
- Stock-based comp
- $73M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From DXC Technology Company’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
FCF $1.1B · Sales −4%
- Free cash flow, 12 months$1.1B
- Free-cash-flow yield43.1%
- Free-cash-flow margin9%
- Gross margin22%
- Operating margin3%
- Return on invested capital7%
- Return on equity3%
- Sales growth (latest quarter vs year-ago quarter)−4%
- Net debt / EBITDA1.6×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $14.76
- 52-wk lowlowest close, 1 year$8.22−44.3%
- PriceMon Nov 2 close$14.76you are here
- 52-wk highhighest close, 1 year$16.30+10.4%
Momentum & 52-week range
RSI 60 · 5 days −9.4%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
DXC is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on DXC Technology Company in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 1:01 PM ET.
Compare with peers
Closest in size in IT services
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.