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Rackspace TechnologyRXT -4.20%43 Debt-to-EBITDA is 7.51 as of Mar. 2026, which is 10% above its 10-year median of 6.84. GuruFocus rates RXT with a GF Score™ of 43/100 and a GF Value™ of $1.40 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,715 Software companies, Rackspace Technology ranks worse than 93.29% 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 Rackspace Technology's Debt-to-EBITDA or its related term are showing as below:
RXT'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -17.8 Med: 6.84 Max: 13.33
Current: 9.97
During the past 9 years, the highest Debt-to-EBITDA Ratio of Rackspace Technology was 13.33. The lowest was -17.80. And the median was 6.84.
RXT's Debt-to-EBITDA is ranked worse than 93.29% of 1715
companies
in the Software industry
Industry Median: 1.09
vs RXT: 9.97
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.
Rackspace Technology Debt-to-EBITDA Related Terms
Rackspace Technology Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Rackspace Technology'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.
For the Software - Infrastructure subindustry, Rackspace Technology'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.
Rackspace Technology Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Rackspace Technology'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.
Rackspace Technology (RXT) has a Debt-to-EBITDA of 7.51 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 Rackspace Technology. This is 10% above median its historical median of 6.84. According to the industry distribution chart, Rackspace Technology ranks #1600 out of 1715 companies in the Software industry, placing it in the top 93.3%.
Is Rackspace Technology's Debt-to-EBITDA too high?
Rackspace Technology's current Debt-to-EBITDA of 7.51 is 10% above median its 10-year median of 6.84. The Software industry median Debt-to-EBITDA is 1.09. Rackspace Technology's value of 7.51 is 589% above this industry median. Based on the distribution chart, Rackspace Technology ranks #1600 out of 1715 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Rackspace Technology has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rackspace Technology's Debt-to-EBITDA compare to AEVA and PRGS?
According to the Software industry distribution chart, Rackspace Technology ranks #1600 out of 1715 companies for Debt-to-EBITDA. This places Rackspace Technology in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. Rackspace Technology's value of 7.51 is 589% above this benchmark. While the company's 10-year median is 6.84 vs. the industry median of 1.09, Rackspace Technology 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 1,715 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. Rackspace Technology's current Debt-to-EBITDA of 7.51 is 589% 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 Rackspace Technology. 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. Rackspace Technology's current Debt-to-EBITDA is 7.51, which is 10% above median its own 10-year median of 6.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rackspace Technology stock overvalued right now?
Based on GuruFocus' analysis, Rackspace Technology (RXT) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.40, compared to a current price of $4.45 — trading 217.9% above its estimated fair value. The current Debt-to-EBITDA is 7.51, which is 10% above median its 10-year median of 6.84 and 589% above the Software industry median of 1.09. Rackspace Technology's overall GF Score™ is 43/100 with 5 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 Rackspace Technology (RXT), the current Debt-to-EBITDA is 7.51 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 Rackspace Technology (RXT) Overvalued in 2026?
Based on GuruFocus' analysis, Rackspace Technology stock appears to be overvalued.
The current stock price of $4.45 is trading 217.9% above its estimated GF Value™ of $1.40.
GuruFocus considers Rackspace Technology to be Significantly Overvalued.
Key valuation signals for RXT:
Debt-to-EBITDA: 7.51 (10% above median its 10-year median of 6.84)
GF Value™: $1.40 vs. price of $4.45 (217.9% above fair value)
Industry Position: 589% above the Software median (#1600 of 1715)
No single metric tells the full story. See the RXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rackspace Technology Inc is an end-to-end, hybrid, multi-cloud technology services company. It designs, builds, and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services, Data, Colocation, Cloud, Managed Hosting, Professional Services, and Security and Compliance. It has two reportable segments: Private Cloud and Public Cloud. Maximum revenue is generated from the Public Cloud segment, which offers cloud solutions through managed services, elastic engineering, and professional services offerings for customer environments hosted on the AWS, Microsoft Azure, and Google Cloud public cloud platforms. Geographically, the company derives its key revenue from the U.S.
43GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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