1. MARKETS
  2. SECTOR : SOFTWARE & SERVICES
  3. INDUSTRY : DATA PROCESSING SERVICES
  4. DXC TECHNOLOGY CO
10.78 -0.66 (-5.77%)
9.3M

XNYS 18 Sep, 2026 5:30 PM (EDT)

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Analyze undervaluation/ overvaluation of DXC Tech Co with current and 1 Year Forward PE

INSIGHT
DXC Tech Co is undervalued at both current PE and future earnings estimates.
Right Now : Current PE vs 5 year Average PE
Undervalued
Fair price

Based on 5Yr Average PE

16.5
Upside

Current PE versus 5Yr Average PE

52.9 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Undervalued
Fair price

Based on 1Yr Forward EPS

55.0
Upside

5 Yr Average PE & 1Yr Forward EPS

410.1 %
Info: The DXC Tech Co's current PE is 13.89 ,while its 5 year PE average is 21.2. Its forward PE based on analyst estimates is 4.2
Note: The forward PE ratio (or forward price-to-earnings ratio) is calculated by dividing the current share price of a company by the estimated(1Yr) future (“forward”) earnings per share (EPS) of that company.
Choose Stock, Parameter and Date Range
Furthest date for non subscribers is 19-09-2024

Analyze undervaluation/ overvaluation of DXC Tech Co with historical PE and PBV ratios

from 19 Sep, 2024 to 18 Sep, 2026

Restated PE

Neutral zone

58.1% into PE buy sell zone

% time spent below current PE
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 432 days, DXC Tech Co traded 251 (58.1%) days below the current PE of on Restated basis.

Originally Reported PE

Sell Zone

62.0% into PE buy sell zone

% time spent below current PE
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 440 days, DXC Tech Co traded 273 (62.0%) days below the current PE of on Originally Reported basis.

Note: This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good. Days when PE is negative are not considered in the analysis
PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
4-5
Forward PE is 4.16
51 11.6% 51 11.6%
5-6
101 23.0% 152 34.5%
6-7
115 26.1% 267 60.7%
7-15
Current PE is 13.9
29 6.6% 296 67.3%
15-83
61 13.9% 357 81.1%
83-138
39 8.9% 396 90.0%
138-155
44 10.0% 440 100.0%
Total 440 440
PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
4-5
Forward PE is 4.16
46 10.6% 46 10.6%
5-6
87 20.1% 133 30.8%
6-7
111 25.7% 244 56.5%
7-45
Current PE is 13.9
44 10.2% 288 66.7%
45-83
65 15.0% 353 81.7%
83-155
35 8.1% 388 89.8%
155-173
44 10.2% 432 100.0%
Total 432 432

FAQ

  • What is the PE ratio?

    In its simplest definition, the price-to-earnings ratio (PE ratio) represents the price an investor pays per dollar of a company's earnings.
    For example, if a company has a PE ratio of 25, investors are willing to pay USD 25 for each dollar of the company's current earnings. This indicates that investors value the stock at 25 times its current earnings, with an expectation of future earnings growth.
    The PE ratio fluctuates based on investor sentiment towards a company. Positive sentiment drives the stock price higher, resulting in a higher PE ratio (investors pay more for each dollar of earnings). Conversely, negative sentiment lowers the PE ratio (investors pay less for each dollar of earnings).
  • What is the PE buy/sell zone?

    The PE buy/sell zone is calculated based on how many days a stock has traded at its current PE level.
    To do this, we compare the current PE to the stock’s historical PE performance, to find out how often (for how many days in the past) the stock has traded at its current PE value.
    If the stock has usually traded above its current PE level (it’s at a higher PE for the majority of trading days), then the stock is cheaper than usual and in the PE buy zone.
    If the stock has usually traded below its current PE level (it’s at a lower PE for the majority of trading days), then the stock is more expensive than usual and in the PE sell zone.
  • How is the PE buy sell zone useful?

    The PE buy sell zone tells you if a stock’s current PE level is unusually high or low, and if a stock doesn’t typically trade at that level. It helps investors identify stocks that are undervalued or overvalued in terms of their typical PE trading behavior.
    Investors should keep in mind that the buy zone/sell zone is not a foolproof buy or sell signal. For example, the PE of a stock may have fallen substantially due to adverse events or negative news. Or the PE may have risen sharply after the company has won new orders, made an acquisition, announced a buyback, or some other positive event. PE Buy/Sell Zone signals should be looked at in conjunction with other information.
  • Why are the number of days different for Restated and Originally Reported data?

    This can be because of any of the 2 following reasons:
    1. Days when PE is negative are not considered in the analysis. So if only 1 of the Restated or Originally Reported PE is negative and the other is not, then the days will be different
    2. Companies have reported Originally Reported data for limited period.