MeritValue

DXC Technology Co

DXCdata completeness 88%11 fiscal years on file
The thesis, from the filings

DXC Technology Co earns about 9% on invested capital, below its ~9% cost of capital, and has bought back 30% of its shares over 5 years — no moat visible in the numbers. The estimate methods put fair value between $5.28 and $101.93 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$16.3B1$14.4B2$13.7B3$12.9B3$12.6B3
Net income$718M4−$568M5$91M6$389M6$18M6
Operating cash flow$1.5B7$1.42B8$1.36B9$1.4B9$1.25B9
Capital expenditure$254M10$267M11$182M12$248M12$212M12
Free cash flow (derived)$1.25B7$1.15B8$1.18B9$1.15B9$1.04B9
Total debt$5.58B13$4.69B14$4.18B15$3B15—
Cash & equivalents$2.67B16$1.86B17$1.22B18$1.8B19$1.74B19
Diluted shares255.2M229.0M198.8M184.9M178.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$164.62
your share of equity
Profit it earned you last year
$1.01
Free cash flow it threw off
$57.99
Debt you’d be carrying
—

10 shares is a claim on $164.62 of net worth that earned you $1.01 and generated $57.99 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
9% avg · 5y
FY22 11%FY23 -9%FY24 6%FY25 13%FY26 22%

It earned about 9% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
−30% shares · 5y

Share count is down 30% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 46% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $5.28 and $101.93 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$95.14
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.1%
  • fcfBase$1.15B
DCF · Growth Exit 5Y
$101.93
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.1%
  • fcfBase$1.15B
Earnings Power Value
$5.28
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$91M
  • growthAssumed0.0%
Graham Number
$6.09
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.1%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $101.93
The three cases
Bear0.0%$101.7
Base0.1%$101.93
Bull5.1%$124.24

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.1%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-03-31 · accession 0001688568-24-000032 (Revenues)
  2. 10-K · period ending 2023-03-31 · accession 0001688568-25-000029 (Revenues)
  3. 10-K · period ending 2024-03-31 · accession 0001688568-26-000022 (Revenues)
  4. 10-K · period ending 2022-03-31 · accession 0001688568-24-000032 (NetIncomeLoss)
  5. 10-K · period ending 2023-03-31 · accession 0001688568-25-000029 (NetIncomeLoss)
  6. 10-K · period ending 2024-03-31 · accession 0001688568-26-000022 (NetIncomeLoss)
  7. 10-K · period ending 2022-03-31 · accession 0001688568-24-000032 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-03-31 · accession 0001688568-25-000029 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-03-31 · accession 0001688568-26-000022 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-03-31 · accession 0001688568-24-000032 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-03-31 · accession 0001688568-25-000029 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-03-31 · accession 0001688568-26-000022 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-03-31 · accession 0001688568-23-000030 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-03-31 · accession 0001688568-24-000032 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-03-31 · accession 0001688568-25-000029 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2022-03-31 · accession 0001688568-23-000030 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-03-31 · accession 0001688568-24-000032 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-03-31 · accession 0001688568-25-000029 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2025-03-31 · accession 0001688568-26-000022 (CashAndCashEquivalentsAtCarryingValue)