DXC Technology (DXC) shares have seen movement recently, sparking interest among investors about the company’s overall performance. With returns slipping over the past month and quarter, there are questions about how the company is being valued.

DXC Technology’s share price has drifted lower this year without any major positive catalysts, as recent events have yet to spark a sustained shift in momentum. With a 1-year total shareholder return of -34.7%, sentiment around the stock has been more cautious than optimistic lately.

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With such steep declines and the stock trading below analyst targets, is DXC now undervalued, or has the market already accounted for the company’s future challenges and growth prospects, leaving little room for upside?

Most Popular Narrative: 10% Undervalued

DXC Technology’s fair value narrative suggests the stock is trading at a notable discount to what analysts believe it should be worth, compared to the recent close. This valuation is built on forward-looking industry trends and the company’s shifting strategic focus.

Deepening strategic partnerships with AI and cloud ecosystem players (such as Boomi, Microsoft, AWS, and Google Cloud) create opportunities to deliver value-added solutions for complex enterprise transformations, potentially lifting average deal size, win rates, and revenue growth in key segments.

Want to know how this narrative blends industry optimism and financial rigor? The calculation relies on some unexpectedly bold assumptions about the future size of the business, profitability, and market confidence. Wondering what numbers are really driving that price? You’ll want to see the details that make this valuation stand out from consensus.

Result: Fair Value of $15.13 (UNDERVALUED)

However, ongoing organic revenue declines and competitive pressure from digital-native firms could quickly undermine any optimism about DXC’s potential turnaround.

Build Your Own DXC Technology Narrative

If the current valuation story doesn’t quite fit your perspective or you’re the type who likes to dig into the fundamentals firsthand, it’s easy to test your own insights, build a case, and see how your outlook stacks up. Just choose to Do it your way.

A great starting point for your DXC Technology research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.