Rackspace TechnologyRXT -6.00%47 FCF Yield % is 4.52 as of Jun. 24, 2026, which is 72% below its 10-year median of 16.21. 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 2,865 Software companies, Rackspace Technology ranks better than 64.47% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Rackspace Technology FCF Yield % Related Terms
Rackspace Technology FCF Yield % Historical Data
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The historical data trend for Rackspace Technology's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Rackspace Technology's FCF Yield % 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 FCF Yield % of 4.52 as of Jun. 24, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Rackspace Technology and its competitors. This is 72% below median its historical median of 16.21. According to the industry distribution chart, Rackspace Technology ranks #1018 out of 2865 companies in the Software industry, placing it in the top 35.5%.
Is Rackspace Technology's FCF Yield % too high?
Rackspace Technology's current FCF Yield % of 4.52 is 72% below median its 10-year median of 16.21. The Software industry median FCF Yield % is 0.84. Rackspace Technology's value of 4.52 is 438.1% above this industry median. Based on the distribution chart, Rackspace Technology ranks #1018 out of 2865 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 FCF Yield % compare to RDWR and GCT?
According to the Software industry distribution chart, Rackspace Technology ranks #1018 out of 2865 companies for FCF Yield %. This puts Rackspace Technology in the upper half of its industry. The industry median FCF Yield % is 0.84. Rackspace Technology's value of 4.52 is 438.1% above this benchmark. While the company's 10-year median is 16.21 vs. the industry median of 0.84, 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 FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.84, based on 2,865 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rackspace Technology's current FCF Yield % of 4.52 is 438.1% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Rackspace Technology and its competitors. For the Software industry, the median FCF Yield % is 0.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rackspace Technology's current FCF Yield % is 4.52, which is 72% below median its own 10-year median of 16.21. 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 FCF Yield % is 4.52, which is 72% below median its 10-year median of 16.21 and 438.1% above the Software industry median of 0.84. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Rackspace Technology (RXT), the current FCF Yield % is 4.52 as of Jun. 24, 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:
FCF Yield %: 4.52 (72% below median its 10-year median of 16.21)
GF Value™: $1.42 vs. price of $6.82 (380.3% above fair value)
Industry Position: 438.1% above the Software median (#1018 of 2865)
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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