Rackspace Technology (NAS:RXT) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Rackspace Technology Forward PE Ratio Related Terms
Rackspace Technology Forward PE Ratio Historical Data
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The historical data trend for Rackspace Technology's Forward PE Ratio 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.
Rackspace Technology Forward PE Ratio Chart
Rackspace Technology Annual Data
Trend
2020-12
2021-12
2025-12
Forward PE Ratio
16.37
12.36
98.51
Rackspace Technology Quarterly Data
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2025-09
2025-12
Forward PE Ratio
16.21
16.37
23.81
20.08
13.07
12.36
11.83
9.60
34.01
92.67
98.51
RXT vs AEVA, PRGS, AI: Forward PE Ratio Comparison
For the Software - Infrastructure subindustry, Rackspace Technology's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Software Industry
For the Software industry and Technology sector, Rackspace Technology's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Rackspace Technology's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Rackspace Technology (RXT) has a Forward PE Ratio of 1177.37 as of Jul. 09, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Rackspace Technology and its competitors. According to the industry distribution chart, Rackspace Technology ranks #1162 out of 1169 companies in the Software industry, placing it in the top 99.4%.
Is Rackspace Technology's Forward PE Ratio too high?
Rackspace Technology's current Forward PE Ratio is 1177.37. The Software industry median Forward PE Ratio is 18.59. Rackspace Technology's value of 1177.37 is 6233.4% above this industry median. Based on the distribution chart, Rackspace Technology ranks #1162 out of 1169 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 Forward PE Ratio compare to AEVA and PRGS?
According to the Software industry distribution chart, Rackspace Technology ranks #1162 out of 1169 companies for Forward PE Ratio. This places Rackspace Technology in the lower half of its industry. The industry median Forward PE Ratio is 18.59. Rackspace Technology's value of 1177.37 is 6233.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Software company?
The median Forward PE Ratio among Software companies is 18.59, based on 1,169 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rackspace Technology's current Forward PE Ratio of 1177.37 is 6233.4% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Rackspace Technology and its competitors. For the Software industry, the median Forward PE Ratio is 18.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rackspace Technology's current Forward PE Ratio is 1177.37. 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 $6.58 — trading 363% above its estimated fair value. The current Forward PE Ratio is 1177.37 and 6233.4% above the Software industry median of 18.59. Rackspace Technology's overall GF Score™ is 45/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Rackspace Technology (RXT), the current Forward PE Ratio is 1177.37 as of Jul. 09, 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 $6.58 is trading 363% above its estimated GF Value™ of $1.42.
GuruFocus considers Rackspace Technology to be Significantly Overvalued.
Key valuation signals for RXT:
Forward PE Ratio: 1177.37
GF Value™: $1.42 vs. price of $6.58 (363% above fair value)
Industry Position: 6233.4% above the Software median (#1162 of 1169)
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
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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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