Rackspace Technology Valuation
| RXT Stock | USD 2.38 0.06 2.59% |
Based on Macroaxis valuation methodology, the company appears to be fairly valued. Rackspace Technology holds a recent Real Value of $2.33 per share. The prevailing price of the company is $2.38. Our model determines the value of Rackspace Technology from analyzing the company fundamentals such as Operating Margin of (0.03) %, return on equity of -3.53, and Shares Outstanding of 227.57 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Rackspace Technology's valuation include:
Price Book 0.8119 | Enterprise Value 3.7 B | Enterprise Value Ebitda (18.94) | Price Sales 0.1905 | Forward PE 38.61 |
Fairly Valued
Today
Please note that Rackspace Technology's price fluctuation is very risky at this time. Calculation of the real value of Rackspace Technology is based on 3 months time horizon. Increasing Rackspace Technology's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Rackspace Technology's intrinsic value may or may not be the same as its current market price of 2.38, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 2.38 | Real 2.33 | Target 2.57 | Hype 2.39 | Naive 2.23 |
The intrinsic value of Rackspace Technology's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Rackspace Technology's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Rackspace Technology helps investors to forecast how Rackspace stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Rackspace Technology more accurately as focusing exclusively on Rackspace Technology's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Rackspace Technology's intrinsic value based on its ongoing forecasts of Rackspace Technology's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Rackspace Technology's closest peers.
Rackspace Technology Cash |
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Rackspace Valuation Trend
Rackspace Technology's real value is important for investors to make better decisions and a more accurate overall view of Rackspace Technology's financial worth over time. Using both Rackspace Technology's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Rackspace Revenue by Product
Rackspace Technology Total Value Analysis
Rackspace Technology is at this time anticipated to have company total value of 3.68 B with market capitalization of 527.96 M, debt of 3.43 B, and cash on hands of 283.6 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Rackspace Technology fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
3.68 B | 527.96 M | 3.43 B | 283.6 M |
Rackspace Technology Investor Information
About 85.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.81. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Rackspace Technology recorded a loss per share of 3.45. The entity had not issued any dividends in recent years. The firm had 1:12 split on the 20th of July 2020. Based on the key measurements obtained from Rackspace Technology's financial statements, Rackspace Technology may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 244.1 M | 374.9 M |
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Rackspace Technology Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Rackspace Technology has an asset utilization ratio of 72.19 percent. This implies that the Company is making $0.72 for each dollar of assets. An increasing asset utilization means that Rackspace Technology is more efficient with each dollar of assets it utilizes for everyday operations.Rackspace Technology Ownership Allocation
Rackspace Technology owns a total of 227.57 Million outstanding shares. The majority of Rackspace Technology outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Rackspace Technology to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Rackspace Technology. Please pay attention to any change in the institutional holdings of Rackspace Technology as this could imply that something significant has changed or is about to change at the company. Please note that on November 9, 2021, Representative Susie Lee of US Congress acquired under $15k worth of Rackspace Technology's common stock.Rackspace Technology Profitability Analysis
The company reported the last year's revenue of 2.96 B. Reported Net Loss for the year was (837.8 M) with profit before taxes, overhead, and interest of 867.8 M.About Rackspace Technology Valuation
The stock valuation mechanism determines Rackspace Technology's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Rackspace Technology based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Rackspace Technology. We calculate exposure to Rackspace Technology's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Rackspace Technology's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 628.8 M | 710.4 M | |
| Pretax Profit Margin | (0.29) | (0.30) | |
| Operating Profit Margin | (0.30) | (0.29) | |
| Net Loss | (0.28) | (0.30) | |
| Gross Profit Margin | 0.21 | 0.37 |
Rackspace Technology Growth Indicators
Investing in growth stocks can be very risky. If the company such as Rackspace Technology does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 215.3 M | |
| Forward Price Earnings | 38.61 |
Rackspace Technology Current Valuation Indicators
Rackspace Technology's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Rackspace Technology's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Rackspace Technology, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Rackspace Technology's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Rackspace Technology's worth.Additional Tools for Rackspace Stock Analysis
When running Rackspace Technology's price analysis, check to measure Rackspace Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Rackspace Technology is operating at the current time. Most of Rackspace Technology's value examination focuses on studying past and present price action to predict the probability of Rackspace Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rackspace Technology's price. Additionally, you may evaluate how the addition of Rackspace Technology to your portfolios can decrease your overall portfolio volatility.