DXC Technology Company (DXC)
Technology · NYQ · US
Fundamentals
Valuation and ratings
DXC Technology Company trades at USD9.39, which is 89% below the USD17.77 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 17 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 93.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About DXC Technology 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. 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.
DXC passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is DXC Technology Company (DXC) undervalued?
Against our discounted cash flow estimate of USD17.77, DXC at USD9.39 is 89% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is DXC's P/E ratio?
DXC trades at 93.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.