Published on 27 Dec 2023 on Simply Wall St. via Yahoo Finance
Is Rackspace Technology, Inc. (NASDAQ:RXT) Expensive For A Reason? A Look At Its Intrinsic Value
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Rackspace Technology fair value estimate is US$1.61Current share price of US$1.96 suggests Rackspace Technology is potentially 22% overvaluedOur fair value estimate is 20% lower than Rackspace Technology's analyst price target of US$2.02
Does the December share price for Rackspace Technology, Inc. (NASDAQ:RXT) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.