Rackspace TechnologyRXT -6.00%47 EBITDA Margin % is 15.66% as of Mar. 2026, which is 6% above its 10-year median of 14.84. GuruFocus rates RXT with a GF Score™ of 47/100 and a GF Value™ of $1.42 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,818 Software companies, Rackspace Technology ranks better than 60.86% on this metric.
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Rackspace Technology EBITDA Margin % Related Terms
Rackspace Technology EBITDA Margin % Historical Data
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The historical data trend for Rackspace Technology's EBITDA Margin % 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.
RXT vs RDWR, GCT, TUYA: EBITDA Margin % Comparison
For the Software - Infrastructure subindustry, Rackspace Technology's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Rackspace Technology's EBITDA Margin % 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.
Rackspace Technology (RXT) has a EBITDA Margin % of 15.66% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Rackspace Technology and its competitors. This is near median its historical median of 14.84. According to the industry distribution chart, Rackspace Technology ranks #1103 out of 2818 companies in the Software industry, placing it in the top 39.1%.
Is Rackspace Technology's EBITDA Margin % too high?
Rackspace Technology's current EBITDA Margin % of 15.66% is near median its 10-year median of 14.84. The Software industry median EBITDA Margin % is 8.07. Rackspace Technology's value of 15.66% is 94.1% above this industry median. Based on the distribution chart, Rackspace Technology ranks #1103 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Rackspace Technology has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rackspace Technology's EBITDA Margin % compare to RDWR and GCT?
According to the Software industry distribution chart, Rackspace Technology ranks #1103 out of 2818 companies for EBITDA Margin %. This puts Rackspace Technology in the upper half of its industry. The industry median EBITDA Margin % is 8.07. Rackspace Technology's value of 15.66% is 94.1% above this benchmark. While the company's 10-year median is 14.84 vs. the industry median of 8.07, 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 EBITDA Margin % for a Software company?
The median EBITDA Margin % among Software companies is 8.07, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rackspace Technology's current EBITDA Margin % of 15.66% is 94.1% 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Rackspace Technology and its competitors. For the Software industry, the median EBITDA Margin % is 8.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rackspace Technology's current EBITDA Margin % is 15.66%, which is near median its own 10-year median of 14.84. 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 $1.42, compared to a current price of $6.82 — trading 380.3% above its estimated fair value. The current EBITDA Margin % is 15.66%, which is near median its 10-year median of 14.84 and 94.1% above the Software industry median of 8.07. Rackspace Technology's overall GF Score™ is 47/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Rackspace Technology (RXT), the current EBITDA Margin % is 15.66% 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 $6.82 is trading 380.3% above its estimated GF Value™ of $1.42.
GuruFocus considers Rackspace Technology to be Significantly Overvalued.
Key valuation signals for RXT:
EBITDA Margin %: 15.66% (near median its 10-year median of 14.84)
GF Value™: $1.42 vs. price of $6.82 (380.3% above fair value)
Industry Position: 94.1% above the Software median (#1103 of 2818)
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.
47GF Score
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