Latest Ratios: P/E Ratio 21.5x · EV/EBITDA 3.3x · 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 | $2.4B | $2.2B | $3.2B | $4.2B | $5.9B | $8.3B | $7.9B | $3.4B | $18.1B | $29.1B | $8.0B |
| Enterprise Value | $4.9B | $4.8B | $5.9B | $7.9B | $9.4B | $11.8B | $11.4B | $11.2B | $22.6B | $34.5B | $9.7B |
| P/E Ratio → | 21.49 | 125.70 | 8.12 | 46.11 | — | 11.61 | 11.05 | — | 14.39 | 16.64 | — |
| P/S Ratio | 0.19 | 0.18 | 0.24 | 0.31 | 0.41 | 0.51 | 0.49 | 0.17 | 0.87 | 1.34 | 1.06 |
| P/B Ratio | 0.83 | 0.70 | 0.90 | 1.38 | 1.53 | 1.55 | 1.48 | 0.66 | 1.55 | 2.11 | 3.71 |
| P/FCF | 2.34 | 2.17 | 3.84 | 4.42 | 5.10 | 6.68 | — | 1.91 | 14.77 | 12.44 | 16.35 |
| P/OCF | 1.93 | 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 | 3.34 | 3.35 | 2.94 | 5.49 | 22.83 | 4.10 | 3.66 | 3.78 | 5.79 | 7.43 | 12.25 |
| EV / EBIT | 19.06 | 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 | 1.97 | 3.88 | 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 | 1.12 | 2.64 | 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 | 4.7% | 0.8% | 12.3% | 2.2% | — | 8.6% | 9.1% | — | 7.0% | 6.0% | — |
| FCF Yield | 42.8% | 46.1% | 26.1% | 22.6% | 19.6% | 15.0% | — | 52.3% | 6.8% | 8.0% | 6.1% |
| Buyback Yield | 10.3% | 11.1% | 0.4% | 21.3% | 11.4% | 7.5% | 0.0% | 21.8% | 7.4% | 0.5% | 0.2% |
| Total Shareholder Yield | 10.3% | 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 21.5x. The historical average is 16.2x. This places it at the 92th percentile of its historical range.
DXC Technology Company's current EV/EBITDA is 3.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.7x.
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 21.5x. This is at the 92th 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
Thin margins amid leverage
Metrics are mathematically derived from official filings.
Low Multiples Reflect Distressed Growth Pricing
Based on DXC's reported figures, the trailing P/E of 148.60 sits far above the forward P/E of 4.68, while EV/EBITDA of 3.47 and P/S of 0.19 point to a market valuing the business as a shrinking asset base rather than a growth franchise, with the gap between trailing and forward earnings warranting caution.
The extreme divergence between trailing P/E of 148.60 and forward P/E of 4.68 suggests that trailing earnings are depressed by discrete items and that the market may be pricing in an earnings recovery not yet visible in reported results. Against peers such as Cognizant at 14.22x and Infosys at 15.06x, DXC's sub-5x forward multiple appears to reflect expectations of continued revenue contraction and a melting-ice-cube thesis for legacy infrastructure. Investors should monitor whether forward estimates hold, since the low P/FCF of 2.32 may indicate either genuine value or a market skeptical of cash flow durability.
Thin Margins Leave Minimal Earnings Buffer
As reported in DXC's quarterly statements, operating margin has averaged roughly 2-5% and trailing net margin sits near 0.1%, compared with peer net margins of 10.6% to 16.4% at Cognizant, Wipro and Infosys, leaving very little room for absorbing shocks.
Gross margin has fluctuated sharply, from negative levels in 2026Q4 to 21.8% in the latest quarter, which suggests delivery economics are highly sensitive to labor utilization and contract mix. The gap to peers appears largely structural, reflecting a labor-heavy legacy outsourcing base rather than a temporary dip. Operating margin, not net margin, is likely the more reliable gauge of earning power here, since net income is repeatedly distorted by restructuring and amortization charges.
Returns Stalled Below Cost of Capital
Based on DXC's reported figures, ROIC has ranged from roughly -1.1% to 3.9% over ten quarters and ROE sits near 0.5% in the latest period, well below peer ROIC levels of 11.9% to 34.4% at Wipro, Cognizant and Infosys.
Returns have oscillated around zero rather than compounding, indicating that invested capital, including goodwill from the CSC and HPE Enterprise Services combination, may not be generating adequate economic profit. The low ROE alongside a Debt/Equity ratio of 1.11 suggests leverage is amplifying thin operating returns without producing meaningful shareholder value. The trend appears to reflect decaying returns driven primarily by margin weakness rather than asset efficiency.
Deleveraging Lags Interest Coverage Volatility
According to reported quarterly balance sheets, Debt/Equity declined from 1.56 to 1.11 over ten quarters while interest coverage has swung between -4.95x and 6.83x, suggesting balance sheet debt comfort is improving but remains erratic in earnings terms.
The reduction in total debt from $4.8B to $3.7B reflects genuine deleveraging, yet the stalled equity base means part of the ratio improvement may stem from thin book value rather than earnings growth. Debt/EBITDA of 11.50x in the latest quarter suggests EBITDA, not the debt stack, is the binding constraint. Investors should watch refinancing terms and covenant headroom, though the provided data does not disclose maturity profiles or covenant levels, so these conclusions remain inferential.
Current Ratio Erodes Toward Minimal Cushion
As reported in the latest balance sheet, the current ratio fell from 1.41 to 1.15 in a single quarter while cash declined to $1.6B, narrowing the short-term liquidity margin against current obligations.
A current ratio at 1.15 with quick ratio equal to current ratio suggests minimal inventory dependence, consistent with a services model, so liquidity likely depends largely on receivables collection and cash balances. The sharp quarterly decline may indicate working capital pressure rather than a structural liquidity crisis. Under severe stress, the thin cushion above current liabilities would likely require reliance on receivables timing or external financing, though the data does not disclose committed facilities.
Structural Gaps Versus Digital Peers Persist
Based on peer comparison data, DXC trails Cognizant, Wipro and Infosys on ROE, ROIC and net margin, while Kyndryl, the closest legacy competitor, shows comparable pressure with a Debt/Equity of 3.84 and net margin of 1.3%.
DXC's margin and return gaps to digital-focused peers appear structural, plausibly tied to its GIS legacy mix, whereas its profile is closer to Kyndryl, which faces similar leverage and thin profitability. The lower valuation multiples versus Cognizant and Infosys seem to reflect the market's view that these gaps will not close quickly. Gaps versus Kyndryl are less severe, suggesting the sector-wide legacy infrastructure problem may be a larger driver than company-specific execution.
Melting Ice Cube Thesis May Be Overstated
Under a bear reading of reported figures, the low P/FCF of 2.32 and sub-5x forward P/E may reflect a durable cash annuity rather than a terminal decline, though thin margins and negative revenue growth of -1.8% keep this interpretation contingent.
The most commonly misapplied ratio for DXC is the trailing P/E, since the 148.60 figure is distorted by restructuring and amortization charges and obscures recurring cash generation. Free cash flow yield and EBITDA less capex, adjusted for separation costs, would better reflect the earnings base of a labor-heavy outsourcing business. If operating cash flow proves more durable than net income, the market may be underpricing the long tail of legacy contracts, but this view depends on client retention and the pace of GenAI-driven labor deflation.