DXC Technology Company (DXC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+1387.8%

$221.32

vs $14.88 price

Levered DCF

$167.69

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

1.06

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	125.7×	7.93×	45.72×	-10.35×	11.37×	11.05×	-0.63×	14.49×
P/B	0.75×	0.95×	1.46×	1.67×	1.61×	1.57×	0.71×	1.6×
P/S	0.17×	0.24×	0.3×	0.41×	0.5×	0.49×	0.17×	0.88×
EV / EBITDA	2.78×	2.64×	4.22×	10.81×	3.78×	3.43×	-3.88×	5.87×
Gross margin	14.8%	24.1%	22.6%	22.1%	22.0%	22.0%	13.6%	28.0%
Operating margin	2.0%	5.4%	-0.0%	-7.9%	7.0%	7.0%	5.1%	9.1%
Net margin	0.1%	3.0%	0.7%	-3.9%	4.4%	4.4%	-27.4%	6.1%
Current ratio	1.36×	1.22×	1.17×	1.18×	1.09×	1.09×	1.14×	0.97×
Debt / equity	1.44×	1.41×	1.73×	1.53×	1.22×	1.22×	2.4×	0.65×
Interest coverage	1.19×	2.63×	-0.01×	-5.71×	5.59×	3.16×	2.62×	5.63×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.7%	6.3%	1.2%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	7.4%	-4.0%	16.7%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	0.6%	12.0%	3.2%	-16.2%	14.2%	14.2%	-112.2%	11.0%
Return on invested capital	0.2%	4.4%	-0.0%	-6.4%	5.1%	5.1%	5.0%	6.7%
Return on assets	0.1%	2.9%	0.7%	-3.6%	3.6%	3.6%	-20.6%	4.3%
Free cash flow yield	47.1%	26.7%	23.2%	19.6%	15.3%	-1.7%	52.3%	6.7%
Earnings yield	0.8%	12.6%	2.2%	-9.7%	8.8%	9.0%	-159.1%	6.9%
Enterprise value	$4.7B	$5.8B	$7.8B	$9.4B	$11.7B	$11.4B	$11.2B	$22.7B
Net debt / EBITDA	1.48×	1.25×	1.98×	4.05×	1.13×	1.05×	-2.71×	1.17×
Cash conversion cycle (days)	67	64	58	62	62	62	47	66