What is Rackspace Technology, Inc. worth?
With the base-case assumptions below, a discounted cash flow model on Rackspace Technology, Inc.'s reported free cash flow gives -$6.05 per share. The share price was $2.63 on November 10, 2026, 143% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -5.0% | 10.0% | -$8.00 | -404% |
| Base | -0.0% | 9.0% | -$6.05 | -330% |
| Bull | 5.0% | 8.0% | -$2.40 | -191% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | -$4.70 | -$4.29 | -$3.80 | -$3.18 | -$2.39 |
| 8.0% | -$5.70 | -$5.44 | -$5.13 | -$4.75 | -$4.30 |
| 9.0% | -$6.43 | -$6.25 | -$6.05 | -$5.80 | -$5.52 |
| 10.0% | -$6.99 | -$6.87 | -$6.72 | -$6.56 | -$6.37 |
| 11.0% | -$7.44 | -$7.34 | -$7.24 | -$7.12 | -$6.99 |
Where the presets come from
Base: years 1 to 5 grow at Rackspace Technology, Inc.'s revenue growth rate over the last 5 fiscal years (-0.2% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions