DXC Technology Valuation

DXC Stock  USD 21.21  0.15  0.71%   
At this time, the firm appears to be undervalued. DXC Technology owns a latest Real Value of $23.25 per share. The recent price of the firm is $21.21. Our model computes the value of DXC Technology from analyzing the firm fundamentals such as Return On Asset of -0.0298, current valuation of 7.46 B, and Shares Outstanding of 182.87 M as well as examining its technical indicators and probability of bankruptcy. In general, most investors advise purchasing undervalued equities and exiting overvalued equities since, in the future, asset prices and their ongoing real values will draw towards each other.
Price Book
1.2148
Enterprise Value
7.5 B
Enterprise Value Ebitda
7.4764
Price Sales
0.2776
Forward PE
5.16
Undervalued
Today
21.21
Please note that DXC Technology's price fluctuation is very steady at this time. Calculation of the real value of DXC Technology is based on 3 months time horizon. Increasing DXC Technology's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for DXC Technology Co is useful when determining the fair value of the DXC stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of DXC Technology. Since DXC Technology is currently traded on the exchange, buyers and sellers on that exchange determine the market value of DXC Stock. However, DXC Technology's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  21.21 Real  23.25 Target  24.83 Hype  21.15
The real value of DXC Stock, also known as its intrinsic value, is the underlying worth of DXC Technology Company, which is reflected in its stock price. It is based on DXC Technology's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of DXC Technology's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence DXC Technology's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
23.25
Real Value
25.21
Upside
Estimating the potential upside or downside of DXC Technology Co helps investors to forecast how DXC stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of DXC Technology more accurately as focusing exclusively on DXC Technology's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.750.830.77
Details
Hype
Prediction
LowEstimatedHigh
19.1921.1523.11
Details
15 Analysts
Consensus
LowTarget PriceHigh
22.6024.8327.56
Details

DXC Technology Investments

(693.74 Million)

DXC Technology Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining DXC Technology's current stock value. Our valuation model uses many indicators to compare DXC Technology value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across DXC Technology competition to find correlations between indicators driving DXC Technology's intrinsic value. More Info.
DXC Technology Co is rated # 3 in price to book category among related companies. It is rated # 3 in price to earning category among related companies reporting about  10.46  of Price To Earning per Price To Book. . Comparative valuation analysis is a catch-all model that can be used if you cannot value DXC Technology by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for DXC Technology's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the DXC Technology's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates DXC Technology's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in DXC Technology and how it compares across the competition.

About DXC Technology Valuation

The stock valuation mechanism determines the current worth of DXC Technology Co on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of DXC Technology Co. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of DXC Technology based exclusively on its fundamental and basic technical indicators. By analyzing DXC Technology's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of DXC Technology's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of DXC Technology. We calculate exposure to DXC Technology's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to DXC Technology's related companies.
Last ReportedProjected for 2024
Gross Profit3.7 B2.4 B
Pretax Profit Margin(0.07)(0.07)
Operating Profit Margin(0.05)(0.05)
Net Loss(0.05)(0.04)
Gross Profit Margin 0.20  0.15 

8 Steps to conduct DXC Technology's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates DXC Technology's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct DXC Technology's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain DXC Technology's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine DXC Technology's revenue streams: Identify DXC Technology's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research DXC Technology's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish DXC Technology's growth potential: Evaluate DXC Technology's management, business model, and growth potential.
  • Determine DXC Technology's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate DXC Technology's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

DXC Technology Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as DXC Technology does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding223.9 M
Quarterly Earnings Growth Y O Y2.24
Forward Price Earnings5.16

DXC Technology Current Valuation Indicators

Valuation refers to the process of determining the present value of DXC Technology Co and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value DXC we look at many different elements of the entity such as DXC's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. DXC Technology's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final DXC Technology's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as DXC Technology, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use DXC Technology's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes DXC Technology's worth.
When determining whether DXC Technology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of DXC Technology's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Dxc Technology Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Dxc Technology Co Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DXC Technology Co. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in interest.
You can also try the AI Investment Finder module to use AI to screen and filter profitable investment opportunities.

Complementary Tools for DXC Stock analysis

When running DXC Technology's price analysis, check to measure DXC Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy DXC Technology is operating at the current time. Most of DXC Technology's value examination focuses on studying past and present price action to predict the probability of DXC Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move DXC Technology's price. Additionally, you may evaluate how the addition of DXC Technology to your portfolios can decrease your overall portfolio volatility.
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Is DXC Technology's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DXC Technology. If investors know DXC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DXC Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
2.24
Earnings Share
(1.85)
Revenue Per Share
67.173
Quarterly Revenue Growth
(0.05)
Return On Assets
(0.03)
The market value of DXC Technology is measured differently than its book value, which is the value of DXC that is recorded on the company's balance sheet. Investors also form their own opinion of DXC Technology's value that differs from its market value or its book value, called intrinsic value, which is DXC Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DXC Technology's market value can be influenced by many factors that don't directly affect DXC Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between DXC Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if DXC Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DXC Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.