MODEL VERDICT
Rackspace Technology, Inc. (RXT)
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 | 0.64 | $1.77 | CURRENT | — |
| Apr 24, 2026 | MODERATE | 0.63 | $1.58 | CURRENT | — |
| Apr 17, 2026 | MODERATE | 0.63 | $1.47 | CURRENT | — |
| Apr 16, 2026 | MODERATE | 0.63 | $1.23 | CURRENT | — |
| Apr 10, 2026 | MODERATE | 0.63 | $1.32 | 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 |
|---|---|---|---|---|---|
| Price / Free Cash Flow 9 industry peers | $5.38 | +204.0% | 15% | B+ | Peer Data |
| EV To Revenue 10 industry peers | $13.55 | +665.5% | 4% | B | Data |
| Price / Sales 10 industry peers | $21.52 | +1115.8% | 3% | B | Model Driven |
| FCF Yield 9 industry peers | $5.27 | +197.7% | 1% | B | Data |
| Weighted Output Blended model output | $369.52 | +20777.0% | 100% | 66 | SIGNIFICANTLY UNDERVALUED |
Cross-sectional regression predicting expected multiples based on growth, margins, ROIC, and beta.
| Multiple | Avg | Median | Min | Max | Std |
|---|---|---|---|---|---|
| EV/EBITDA | 13.60 | 13.31 | 13.01 | 14.49 | 0.78 |
| P/FCF | 3426.83 | 3.48 | 1.55 | 17115.88 | 7652.41 |
| P/FFO | 8.05 | 10.29 | 2.10 | 11.76 | 5.20 |
| P/AFFO | 13.79 | 17.08 | 4.69 | 19.61 | 7.98 |
| P/B Ratio | 1.86 | 2.11 | 0.99 | 2.47 | 0.77 |
| P/S Ratio | 0.47 | 0.19 | 0.09 | 1.26 | 0.50 |
Based on our peer multiples analysis with 10 valuation metrics, the model estimates RXT's fair value at $369.52 vs the current price of $1.77, implying +20777.0% upside potential. Model verdict: Significantly Undervalued. Confidence: 66/100. This is a quantitative estimate, not a recommendation.
The blended fair value of $369.52 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 $2.61 (P10) to $685.33 (P90), with a median of $176.54.
RXT's current P/E of -1.9x compares to the industry median of 18.4x (6 peers in the group). This represents a -110.1% discount to the industry. The historical average P/E is N/Ax over 0 years. Signal: Deep Discount.
13 analysts cover RXT with a consensus rating of Hold. The consensus price target is $3.33 (range: $1.80 — $5.00), implying +88.1% upside from the current price. Grade breakdown: Strong Buy (0), Buy (2), Hold (8), Sell (3), Strong Sell (0).
The model confidence score is 66/100, based on: data completeness (18), peer quality (25), historical depth (16), earnings stability (5), and model agreement (2). Cyclicality penalty: -0 points. The model shows moderate 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 RXT.
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.