Latest Ratios: P/E Ratio 109.3x · EV/EBITDA 3.0x · ROE 0.5%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.8B | $2.2B | $3.2B | $4.2B | $5.9B | $8.3B | $7.9B | $3.4B | $18.1B | $29.1B | $8.0B |
| Enterprise Value | $4.3B | $4.8B | $5.9B | $7.9B | $9.4B | $11.8B | $11.4B | $11.2B | $22.6B | $34.5B | $9.7B |
| P/E Ratio → | 109.30 | 125.70 | 8.12 | 46.11 | — | 11.61 | — | — | 14.39 | 16.64 | — |
| P/S Ratio | 0.14 | 0.18 | 0.24 | 0.31 | 0.41 | 0.51 | 0.49 | 0.17 | 0.87 | 1.34 | 1.06 |
| P/B Ratio | 0.61 | 0.70 | 0.90 | 1.38 | 1.53 | 1.55 | 1.48 | 0.66 | 1.55 | 2.11 | 3.71 |
| P/FCF | 1.71 | 2.17 | 3.84 | 4.42 | 5.10 | 6.68 | — | 1.91 | 14.77 | 12.44 | 16.35 |
| P/OCF | 1.42 | 1.80 | 2.26 | 3.10 | 4.14 | 5.55 | 64.07 | 1.44 | 10.15 | 9.38 | 8.21 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.38 | 0.46 | 0.58 | 0.65 | 0.73 | 0.70 | 0.57 | 1.09 | 1.59 | 1.28 |
| EV / EBITDA | 3.02 | 3.35 | 2.94 | 5.49 | 22.83 | 4.10 | 3.97 | 3.69 | 5.79 | 7.43 | 12.25 |
| EV / EBIT | 16.60 | 8.91 | 6.60 | 19.31 | — | 8.79 | 8.51 | — | 12.23 | 21.27 | — |
| EV / FCF | — | 4.59 | 7.18 | 8.24 | 8.15 | 9.48 | — | 6.34 | 18.46 | 14.75 | 19.81 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 14.8% | 14.8% | 24.1% | 22.6% | 22.1% | 22.0% | 22.0% | 13.6% | 28.0% | 24.9% | 27.1% |
| Operating Margin | 2.0% | 2.0% | 5.4% | -0.0% | -7.9% | 7.0% | 7.0% | 5.1% | 9.1% | 12.1% | 1.8% |
| Net Profit Margin | 0.1% | 0.1% | 3.0% | 0.7% | -3.9% | 4.4% | 4.4% | -27.4% | 6.1% | 8.1% | -1.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 0.5% | 0.5% | 11.9% | 2.6% | -12.4% | 13.4% | 13.7% | -63.8% | 9.8% | 21.9% | -5.9% |
| ROA | 0.1% | 0.1% | 2.9% | 0.6% | -3.2% | 3.6% | 3.1% | -19.3% | 4.0% | 8.2% | -1.5% |
| ROIC | 3.2% | 3.2% | 8.1% | -0.0% | -10.6% | 9.6% | 7.8% | 5.2% | 7.9% | 17.1% | 2.8% |
| ROCE | 2.9% | 2.9% | 7.6% | -0.0% | -9.5% | 8.6% | 7.3% | 5.2% | 8.5% | 17.7% | 2.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.32 | 1.32 | 1.30 | 1.59 | 1.40 | 1.15 | 1.15 | 2.24 | 0.63 | 0.58 | 1.37 |
| Debt / EBITDA | 3.00 | 3.00 | 2.26 | 3.40 | 13.09 | 2.14 | 2.14 | 3.79 | 1.90 | 1.72 | 3.73 |
| Net Debt / Equity | — | 0.78 | 0.79 | 1.19 | 0.92 | 0.65 | 0.65 | 1.52 | 0.39 | 0.39 | 0.78 |
| Net Debt / EBITDA | 1.77 | 1.77 | 1.37 | 2.55 | 8.55 | 1.21 | 1.21 | 2.58 | 1.16 | 1.16 | 2.14 |
| Debt / FCF | — | 2.42 | 3.35 | 3.82 | 3.05 | 2.80 | — | 4.43 | 3.68 | 2.31 | 3.46 |
| Interest Coverage | 2.47 | 2.47 | 3.38 | 1.37 | -3.42 | 6.59 | 3.73 | -12.65 | 5.54 | 5.08 | -0.49 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.36 | 1.36 | 1.22 | 1.17 | 1.18 | 1.09 | 1.09 | 1.14 | 0.97 | 0.98 | 1.10 |
| Quick Ratio | 1.36 | 1.36 | 1.22 | 1.17 | 1.18 | 1.09 | 1.09 | 1.14 | 0.91 | 0.87 | 1.10 |
| Cash Ratio | 0.44 | 0.44 | 0.41 | 0.28 | 0.36 | 0.39 | 0.39 | 0.47 | 0.31 | 0.26 | 0.43 |
| Asset Turnover | — | 0.98 | 0.97 | 0.99 | 0.91 | 0.81 | 0.81 | 0.75 | 0.70 | 0.64 | 0.88 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 23.84 | 15.15 | — |
| Days Sales Outstanding | — | 85.82 | 84.28 | 86.88 | 87.04 | 86.49 | 86.49 | 81.89 | 91.12 | 92.05 | 78.83 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | 0.7% | 6.3% | 1.2% | 0.6% | 1.0% |
| Payout Ratio | — | — | — | — | — | — | 7.4% | — | 16.7% | 9.9% | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.9% | 0.8% | 12.3% | 2.2% | — | 8.6% | — | — | 7.0% | 6.0% | — |
| FCF Yield | 58.5% | 46.1% | 26.1% | 22.6% | 19.6% | 15.0% | — | 52.3% | 6.8% | 8.0% | 6.1% |
| Buyback Yield | 14.1% | 11.1% | 0.4% | 21.3% | 11.4% | 7.5% | 0.0% | 21.8% | 7.4% | 0.5% | 0.2% |
| Total Shareholder Yield | 14.1% | 11.1% | 0.4% | 21.3% | 11.4% | 7.5% | 0.7% | 28.2% | 8.6% | 1.1% | 1.1% |
| Shares Outstanding | — | $179M | $185M | $199M | $229M | $255M | $254M | $259M | $281M | $290M | $140M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying DXC stock.
DXC Technology Company's current P/E ratio is 109.3x. The historical average is 16.4x. This places it at the 96th percentile of its historical range.
DXC Technology Company's current EV/EBITDA is 3.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.8x.
DXC Technology Company's return on equity (ROE) is 0.5%. The historical average is 5.0%.
Based on historical data, DXC Technology Company is trading at a P/E of 109.3x. This is at the 96th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
DXC Technology Company has 14.8% gross margin and 2.0% operating margin.
DXC Technology Company's Debt/EBITDA ratio is 3.0x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Persistent revenue contraction and thin margins
Metrics are mathematically derived from official filings.
Margin Volatility Masks Structural Strain
DXC's gross margin swung from 25.1% to -4.5% over the past year, with the latest quarter at 20.4%, indicating unstable pricing power and cost control, as per reported financials.
The extreme quarterly swings in gross margin—from 25.1% in 2025Q2 to -4.5% in 2026Q4—suggest that reported profitability is heavily influenced by one-off items or contract timing, rather than a stable underlying trend. The most recent quarter's 20.4% gross margin and 8.0% operating margin show a rebound, but the four-quarter average operating margin of only 3.4% indicates that the company has not achieved sustainable operating leverage. Net margin of 0.14% on a TTM basis leaves virtually no buffer for operational missteps or wage inflation, which is a critical vulnerability given the labor-intensive nature of the business.
Returns on Capital Remain Subdued
ROIC has averaged roughly 1.5% over the last ten quarters, with the latest quarter at 3.2%, indicating that DXC is generating minimal returns on invested capital, as shown in the financial data.
ROIC of 3.2% in 2027Q1, while an improvement from the -1.1% in 2026Q4, remains far below the cost of capital and well below peers like Cognizant (18.7%) and Infosys (34.4%). The low returns are driven by both thin margins and a relatively high capital base, despite the company's shift toward asset-light operations. ROE of 3.7% in the latest quarter is similarly weak, suggesting that the company is not compounding shareholder value at a rate that justifies its risk profile. The persistent sub-5% returns indicate that management's capital allocation has not yet translated into meaningful value creation.
Working Capital Efficiency Shows Mixed Signals
DSO has hovered around 85-90 days over the past ten quarters, while DPO has declined from 32 to 24 days, indicating that DXC is collecting receivables slowly but paying suppliers faster, as per the latest data.
The stable DSO of approximately 85-90 days suggests that DXC's contract-based revenue does not translate into faster cash collection, which may reflect the complexity of its client billing cycles. The decline in DPO from 32 days in 2024Q4 to 24 days in 2027Q1 indicates that the company is paying suppliers more promptly, which could be a strategic choice to maintain relationships but also reduces its cash conversion cycle benefit. With DIO data unavailable, the full CCC cannot be computed, but the combination of high DSO and falling DPO suggests that working capital is not a source of cash generation. Asset turnover has remained flat at 0.23-0.24, indicating that the company's asset base is not becoming more productive despite revenue declines.
Leverage Easing but Still Elevated
Debt-to-equity improved from 1.59 to 1.25 over ten quarters, yet remains high relative to peers like Cognizant (0.10), indicating a leveraged balance sheet that may constrain flexibility, as per reported figures.
The improvement in D/E from 1.59 to 1.25 is a positive trend, but the absolute level remains elevated compared to the peer group, where Cognizant and Infosys have D/E ratios of 0.10. Interest coverage has been volatile, with a negative reading in 2026Q4 (-4.95) but recovering to 5.38 in 2027Q1, suggesting that debt service is currently manageable but highly sensitive to earnings swings. The D/EBITDA ratio of 8.22 in the latest quarter is high, indicating that EBITDA may not provide a substantial cushion for debt reduction. The combination of high leverage and thin margins suggests that DXC has limited financial flexibility to invest in growth or weather a downturn.
Liquidity Buffer Strengthens
Current ratio improved from 1.17 to 1.41 over ten quarters, with cash rising to $2.0B, providing a stronger buffer against operational shocks, based on reported balance sheet data.
The current ratio of 1.41 in 2027Q1 is the highest in the ten-quarter period, indicating that DXC has improved its ability to cover short-term obligations. The quick ratio is identical to the current ratio, suggesting that inventory is not a significant component of current assets, which is consistent with a services business. The increase in cash to $2.0B provides a cushion, but given the thin margins and high leverage, this liquidity could be quickly consumed by restructuring costs or debt repayments. The improvement in liquidity is a positive sign, but it does not offset the structural profitability challenges.
Misapplied P/E Ratio Obscures Cash Generation
The TTM P/E of 108.0 is misleading for DXC because earnings are volatile and understate cash generation; the P/FCF of 1.69 better reflects the company's ability to generate cash, as per the financial data.
The most commonly misapplied ratio for DXC is the P/E ratio, which is distorted by the company's frequent restructuring charges and non-cash amortization, leading to a TTM P/E of 108.0 that does not reflect underlying economics. In contrast, the P/FCF of 1.69 indicates that the market is pricing the stock at a significant discount to its free cash flow generation, which has been consistently positive and stable. Analysts should focus on EV/EBITDA (3.0) and P/FCF (1.69) as more reliable valuation metrics, as they capture the cash-generating ability of the legacy infrastructure business that the P/E ratio obscures. The forward P/E of 3.37 suggests that the market expects a sharp earnings recovery, but this may be overly optimistic given the persistent revenue decline.