* Note: Prices are in Million (M) USD.
Description:
DXC Technology is an American multinational corporation that provides business-to-business information technology services.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,792 M
Debt : $4,799 M
EBITDA : $2,165 M
Net Debt (Debt - Cash): $3,007 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Information technology services
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 4.60
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $747 M
Average Revenue: $15,093 M
Revenue Converted To Free Cash Flow (%): 5.0%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-03-31): $12,871 M
Revenue 4 Years Ago (2021-03-31): $17,729 M
Last 5 Years Average Revenue Growth: -5%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-03-31): $185 M
Share Count 5 Years Ago (2021-03-31): $254 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.25
Trailing 12-Month Earnings Per Share (EPS): $3.03
Average Earnings Per Share (EPS): $3.14
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: -4.9%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $14
52-Week Low: $12
Threshold Price (15% Above 52-Week Low): $14
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,372 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 18 points to above DXC Technology Co (DXC) stock.
Last 6 Years Avg PE 11.84, Fair Value PE 20, Industry Based PE 25, RCFC Based PE 13.96, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 6 values, average assigned is 16.31. Value-Trades has assined P/E value 16.31. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.14.
The fair value of DXC Technology Co (DXC) stock should be (16.31 x $3.14) = $51.23.
