MODEL VERDICT
DXC Technology Company (DXC)
Relative Valuation•Peer multiples, Monte Carlo simulation & quality-adjusted fair value
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Composite score derived from valuation, quality, and risk factors
Quantitative model thresholds · For educational and research purposes only
Each row records the model's monthly assessment. High Conviction = the model detected notable undervaluation vs peers. Neutral = no notable divergence was found. The return column shows the actual price change over 90 days for reference. This is a quantitative observation log — not investment advice.
| Date | Assessment | Score | Price | Status | 90d Fwd Return |
|---|---|---|---|---|---|
| May 1, 2026 | MODERATE | 0.69 | $11.88 | CURRENT | — |
| Apr 24, 2026 | MODERATE | 0.68 | $11.88 | CURRENT | — |
| Apr 17, 2026 | MODERATE | 0.68 | $12.97 | CURRENT | — |
| Apr 16, 2026 | MODERATE | 0.68 | $12.63 | CURRENT | — |
| Apr 10, 2026 | MODERATE | 0.68 | $11.44 | CURRENT | — |
Historical model observations for research purposes only. Past quantitative patterns do not predict future results. Not a recommendation to buy, sell, or hold any security.
| Methodology | Fair Value | vs Current | Weight | Quality | Status |
|---|---|---|---|---|---|
| Forward P/E 10 analyst estimates | $35.12 | +195.6% | 20% | A- | Analyst Est. |
| EV/EBITDA 10 industry peers | $67.99 | +472.3% | 20% | A- | Peer Data |
| Industry Median P/E 10 industry peers | $29.40 | +147.5% | 15% | A | Peer Data |
| Price / Free Cash Flow 10 industry peers | $51.95 | +337.3% | 15% | B+ | Peer Data |
| EV/EBIT 10 industry peers | $22.71 | +91.2% | 8% | B+ | Peer Data |
| EV/FCF 10 industry peers | $32.42 | +172.9% | 7% | B | Model Driven |
| EV To Revenue 10 industry peers | $72.45 | +509.8% | 4% | B | Data |
| Price / Sales 10 industry peers | $85.35 | +618.4% | 3% | B | Model Driven |
| Earnings Yield 10 industry peers | $29.39 | +147.4% | 2% | B | Data |
| FCF Yield 10 industry peers | $51.95 | +337.3% | 1% | B | Data |
| Weighted Output Blended model output | $40.03 | +236.9% | 100% | 80 | SIGNIFICANTLY UNDERVALUED |
| EPS Growth ↓ | P/E Multiple → | 4× | 4× | 6× (Current) | 8× | 10× |
|---|---|---|---|---|---|
| Bear Case (4%) | $9 | $9 | $13 | $17 | $22 |
| Conservative (7%) | $9 | $9 | $13 | $18 | $22 |
| Base Case (10.0%) | $9 | $9 | $14 | $18 | $23 |
| Bull Case (14%) | $10 | $10 | $14 | $19 | $24 |
Cross-sectional regression predicting expected multiples based on growth, margins, ROIC, and beta.
| Multiple | Avg | Median | Min | Max | Std |
|---|---|---|---|---|---|
| P/E Ratio | 17.06 | 8.92 | 6.98 | 43.43 | 17.61 |
| EV/EBIT | 9.86 | 8.16 | 6.10 | 18.71 | 5.04 |
| EV/EBITDA | 6.52 | 4.05 | 2.72 | 21.33 | 6.58 |
| P/FCF | 4.98 | 4.36 | 3.30 | 8.64 | 1.93 |
| P/FFO | 3.14 | 2.99 | 1.59 | 5.33 | 1.24 |
| P/TBV | 6.01 | 5.93 | 2.05 | 9.83 | 2.89 |
| P/AFFO | 5.79 | 3.93 | 1.86 | 17.17 | 5.67 |
| P/B Ratio | 1.20 | 1.30 | 0.78 | 1.52 | 0.27 |
| Div Yield | 0.02 | 0.02 | 0.01 | 0.03 | 0.01 |
| P/S Ratio | 0.38 | 0.36 | 0.21 | 0.51 | 0.11 |
Based on our peer multiples analysis with 26 valuation metrics, the model estimates DXC's fair value at $40.03 vs the current price of $11.88, implying +236.9% upside potential. Model verdict: Significantly Undervalued. Confidence: 80/100. This is a quantitative estimate, not a recommendation.
The blended fair value of $40.03 is calculated using four lenses: industry median multiples (40%), historical multiples (30%), forward estimates (20%), and quality-adjusted multiples (10%). Monte Carlo simulation (10,000 iterations) gives a range of $35.04 (P10) to $51.49 (P90), with a median of $42.04.
DXC's current P/E of 5.7x compares to the industry median of 14.0x (10 peers in the group). This represents a -59.6% discount to the industry. The historical average P/E is 17.1x over 4 years. Signal: Deep Discount.
24 analysts cover DXC with a consensus rating of Hold. The consensus price target is $13.00 (range: $13.00 — $13.00), implying +9.4% upside from the current price. Grade breakdown: Strong Buy (0), Buy (5), Hold (14), Sell (5), Strong Sell (0).
The model confidence score is 80/100, based on: data completeness (27), peer quality (25), historical depth (20), earnings stability (4), and model agreement (4). Cyclicality penalty: -0 points. The model shows strong agreement across inputs.
The model flags several key risks: (1) Macro/regulatory risks are not captured in this model but remain material.
Peak earnings risk data is not available for DXC.
No. This dashboard is a quantitative research tool for educational and informational purposes only. It is not investment advice, a solicitation, or a recommendation to buy, sell, or hold any security. The operator of this platform is not a registered investment advisor (RIA), broker-dealer, or financial planner. All model outputs, fair value estimates, signals, and scenarios are the result of automated quantitative computations and should not be construed as professional financial guidance. You should consult a qualified, licensed financial advisor before making any investment decisions. Past model performance is not indicative of future results.