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DXC Technology CoFRA:2XT -0.67%52 Debt-to-EBITDA is 3.70 as of Mar. 2026, which is 68% above its 10-year median of 2.20. GuruFocus rates FRA:2XT with a GF Score™ of 52/100 and a GF Value™ of €17.44 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 1,720 Software companies, DXC Technology Co ranks worse than 69.88% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for DXC Technology Co's Debt-to-EBITDA or its related term are showing as below:
FRA:2XT'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.98 Med: 2.2 Max: 6.2
Current: 2.48
During the past 13 years, the highest Debt-to-EBITDA Ratio of DXC Technology Co was 6.20. The lowest was -3.98. And the median was 2.20.
FRA:2XT's Debt-to-EBITDA is ranked worse than 69.88% of 1720
companies
in the Software industry
Industry Median: 1.085
vs FRA:2XT: 2.48
DXC Technology Co (FRA:2XT) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
DXC Technology Co Debt-to-EBITDA Related Terms
DXC Technology Co Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for DXC Technology Co's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:2XT vs WYFI, SHAZ, CLVT: Debt-to-EBITDA Comparison
For the Information Technology Services subindustry, DXC Technology Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
DXC Technology Co Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, DXC Technology Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where DXC Technology Co's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
DXC Technology Co (FRA:2XT) has a Debt-to-EBITDA of 3.70 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on DXC Technology Co. This is 68% above median its historical median of 2.20. According to the industry distribution chart, DXC Technology Co ranks #1202 out of 1720 companies in the Software industry, placing it in the top 69.9%.
Is DXC Technology Co's Debt-to-EBITDA too high?
DXC Technology Co's current Debt-to-EBITDA of 3.70 is 68% above median its 10-year median of 2.20. The Software industry median Debt-to-EBITDA is 1.09. DXC Technology Co's value of 3.70 is 241% above this industry median. Based on the distribution chart, DXC Technology Co ranks #1202 out of 1720 companies in the Software industry, which is below the industry midpoint. Overall, DXC Technology Co has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does DXC Technology Co's Debt-to-EBITDA compare to WYFI and SHAZ?
According to the Software industry distribution chart, DXC Technology Co ranks #1202 out of 1720 companies for Debt-to-EBITDA. This places DXC Technology Co in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. DXC Technology Co's value of 3.70 is 241% above this benchmark. While the company's 10-year median is 2.20 vs. the industry median of 1.09, DXC Technology Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.09, based on 1,720 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DXC Technology Co's current Debt-to-EBITDA of 3.70 is 241% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on DXC Technology Co. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DXC Technology Co's current Debt-to-EBITDA is 3.70, which is 68% above median its own 10-year median of 2.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DXC Technology Co stock overvalued right now?
Based on GuruFocus' analysis, DXC Technology Co (FRA:2XT) is currently considered Possible Value Trap. The stock's GF Value™ is €17.44, compared to a current price of €8.14 — trading 53.4% below its estimated fair value. The current Debt-to-EBITDA is 3.70, which is 68% above median its 10-year median of 2.20 and 241% above the Software industry median of 1.09. DXC Technology Co's overall GF Score™ is 52/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For DXC Technology Co (FRA:2XT), the current Debt-to-EBITDA is 3.70 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is DXC Technology Co (FRA:2XT) Overvalued in 2026?
Based on GuruFocus' analysis, DXC Technology Co stock appears to be undervalued.
The current stock price of €8.14 is trading 53.4% below its estimated GF Value™ of €17.44.
GuruFocus considers DXC Technology Co to be Possible Value Trap.
Key valuation signals for FRA:2XT:
Debt-to-EBITDA: 3.70 (68% above median its 10-year median of 2.20)
GF Value™: €17.44 vs. price of €8.14 (53.4% below fair value)
Industry Position: 241% above the Software median (#1202 of 1720)
No single metric tells the full story. See the FRA:2XT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DXC Technology Co is a vendor-independent IT services provider. The company's operating segment includes Global Business Services (GBS) and Global Infrastructure Services (GIS). It generates maximum revenue from the GIS segment. GIS offerings include Cloud and Security; IT Outsourcing and Modern Workplace. Geographically, it derives a majority of revenue from the Other Europe region.
52GF Score
Get the complete analysis for FRA:2XT
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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