Rackspace TechnologyRXT -5.97%45 EV-to-FCF is 59.58 as of Jun. 27, 2026, which is 65% above its 10-year median of 36.01. GuruFocus rates RXT with a GF Score™ of 45/100 and a GF Value™ of $1.42 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,590 Software companies, Rackspace Technology ranks worse than 87.55% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Rackspace Technology's Enterprise Value is $4,581 Mil.
Rackspace Technology's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $77 Mil. Therefore, Rackspace Technology's EV-to-FCF for today is 59.58.
The historical rank and industry rank for Rackspace Technology's EV-to-FCF or its related term are showing as below:
RXT'
s EV-to-FCF Range Over the Past 10 Years
Min: -56.17 Med: 36.01 Max: 44374.61
Current: 59.58
During the past 9 years, the highest EV-to-FCF of Rackspace Technology was 44374.61. The lowest was -56.17. And the median was 36.01.
RXT's EV-to-FCF is ranked worse than 87.55% of 1590
companies
in the Software industry
Industry Median: 14.15
vs RXT: 59.58
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 $5.965.
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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Rackspace Technology EV-to-FCF Related Terms
Rackspace Technology EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Rackspace Technology's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Rackspace Technology's EV-to-FCF falls into.
Rackspace Technology's current Enterprise Value is $4,581 Mil.
Rackspace Technology's Free Cash Flow 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 $77 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-FCF of 59.58 as of Jun. 27, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Rackspace Technology and its competitors. This is 65% above median its historical median of 36.01. According to the industry distribution chart, Rackspace Technology ranks #1392 out of 1590 companies in the Software industry, placing it in the top 87.5%.
Is Rackspace Technology's EV-to-FCF too high?
Rackspace Technology's current EV-to-FCF of 59.58 is 65% above median its 10-year median of 36.01. The Software industry median EV-to-FCF is 14.15. Rackspace Technology's value of 59.58 is 321.1% above this industry median. Based on the distribution chart, Rackspace Technology ranks #1392 out of 1590 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Rackspace Technology has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rackspace Technology's EV-to-FCF compare to RDWR and GCT?
According to the Software industry distribution chart, Rackspace Technology ranks #1392 out of 1590 companies for EV-to-FCF. This places Rackspace Technology in the lower half of its industry. The industry median EV-to-FCF is 14.15. Rackspace Technology's value of 59.58 is 321.1% above this benchmark. While the company's 10-year median is 36.01 vs. the industry median of 14.15, 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.15, based on 1,590 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rackspace Technology's current EV-to-FCF of 59.58 is 321.1% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Rackspace Technology and its competitors. For the Software industry, the median EV-to-FCF is 14.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rackspace Technology's current EV-to-FCF is 59.58, which is 65% above median its own 10-year median of 36.01. 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 $5.97 — trading 320.1% above its estimated fair value. The current EV-to-FCF is 59.58, which is 65% above median its 10-year median of 36.01 and 321.1% above the Software industry median of 14.15. Rackspace Technology's overall GF Score™ is 45/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Rackspace Technology (RXT), the current EV-to-FCF is 59.58 as of Jun. 27, 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 $5.97 is trading 320.1% above its estimated GF Value™ of $1.42.
GuruFocus considers Rackspace Technology to be Significantly Overvalued.
Key valuation signals for RXT:
EV-to-FCF: 59.58 (65% above median its 10-year median of 36.01)
GF Value™: $1.42 vs. price of $5.97 (320.1% above fair value)
Industry Position: 321.1% above the Software median (#1392 of 1590)
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.
45GF Score
Get the complete analysis for RXT
EV-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
RXT has been successfully added to your 
