Is DXC Technology Co. overvalued or undervalued?

As of 12 September 2025, the valuation grade for DXC Technology Co. has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company appears undervalued, supported by a P/E ratio of 6, a price to book value of 0.90, and an EV to EBITDA ratio of 2.80. In comparison to peers, DXC Technology Co. has a significantly lower P/E ratio than FactSet Research Systems, Inc. at 28.40 and Akamai Technologies, Inc. at 22.51, reinforcing the notion of undervaluation.
Despite the positive valuation metrics, DXC Technology Co. has underperformed against the S&P 500, with a year-to-date return of -28.58% compared to the index's 12.22%. This trend continues over the longer term, with a 3-year return of -47.23% versus 70.41% for the S&P 500, highlighting a disconnect between its valuation and market performance.