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Rackspace TechnologyRXT +3.61%38 EV-to-EBITDA is 13.10 as of Jul. 20, 2026, which is 9% above its 10-year median of 11.97. GuruFocus rates RXT with a GF Score™ of 38/100 and a GF Value™ of $1.40 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,954 Software companies, Rackspace Technology ranks worse than 59.42% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Rackspace Technology's enterprise value is $4,187 Mil.
Rackspace Technology's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was $320 Mil. Therefore, Rackspace Technology's EV-to-EBITDA for today is 13.10.
The historical rank and industry rank for Rackspace Technology's EV-to-EBITDA or its related term are showing as below:
RXT'
s EV-to-EBITDA Range Over the Past 10 Years
Min: -136.04 Med: 11.97 Max: 37.18
Current: 13.1
During the past 9 years, the highest EV-to-EBITDA of Rackspace Technology was 37.18. The lowest was -136.04. And the median was 11.97.
RXT's EV-to-EBITDA is ranked worse than 59.42% of 1954
companies
in the Software industry
Industry Median: 10.385
vs RXT: 13.10
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Rackspace Technology's PE Ratio (TTM) for today is calculated as:
Rackspace Technology's share price for today is $4.31.
Rackspace Technology's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-0.610.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Rackspace Technology's EV-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 EV-to-EBITDA, along with its competitors' market caps and EV-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 EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Rackspace Technology's EV-to-EBITDA falls into.
Rackspace Technology's current Enterprise Value is $4,187 Mil.
Rackspace Technology's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $320 Mil.
* 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 EV-to-EBITDA of 13.10 as of Jul. 20, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Rackspace Technology. This is near median its historical median of 11.97. According to the industry distribution chart, Rackspace Technology ranks #1161 out of 1954 companies in the Software industry, placing it in the top 59.4%.
Is Rackspace Technology's EV-to-EBITDA too high?
Rackspace Technology's current EV-to-EBITDA of 13.10 is near median its 10-year median of 11.97. The Software industry median EV-to-EBITDA is 10.39. Rackspace Technology's value of 13.10 is 26.1% above this industry median. Based on the distribution chart, Rackspace Technology ranks #1161 out of 1954 companies in the Software industry, which is below the industry midpoint. Overall, Rackspace Technology has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rackspace Technology's EV-to-EBITDA compare to AEVA and PRGS?
According to the Software industry distribution chart, Rackspace Technology ranks #1161 out of 1954 companies for EV-to-EBITDA. This places Rackspace Technology in the lower half of its industry. The industry median EV-to-EBITDA is 10.39. Rackspace Technology's value of 13.10 is 26.1% above this benchmark. While the company's 10-year median is 11.97 vs. the industry median of 10.39, 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 EV-to-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.39, based on 1,954 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rackspace Technology's current EV-to-EBITDA of 13.10 is 26.1% 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 EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Rackspace Technology. For the Software industry, the median EV-to-EBITDA is 10.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rackspace Technology's current EV-to-EBITDA is 13.10, which is near median its own 10-year median of 11.97. 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 $4.31 — trading 207.9% above its estimated fair value. The current EV-to-EBITDA is 13.10, which is near median its 10-year median of 11.97 and 26.1% above the Software industry median of 10.39. Rackspace Technology's overall GF Score™ is 38/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Rackspace Technology (RXT), the current EV-to-EBITDA is 13.10 as of Jul. 20, 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 $4.31 is trading 207.9% above its estimated GF Value™ of $1.40.
GuruFocus considers Rackspace Technology to be Significantly Overvalued.
Key valuation signals for RXT:
EV-to-EBITDA: 13.10 (near median its 10-year median of 11.97)
GF Value™: $1.40 vs. price of $4.31 (207.9% above fair value)
Industry Position: 26.1% above the Software median (#1161 of 1954)
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.
38GF Score
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EV-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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