Rackspace Technology, Inc. (RXT) Fair Value 2026

RXT · Software - Infrastructure ·

By CirclFi Research Team · Data from SEC EDGAR, FRED & GDELT

Quality Score

5.8 /10

32 fundamental signals · 2 models active

Value Trap Risk

LOW (26/100)

Quick Summary — As of 2026-10-07, Rackspace Technology, Inc. (RXT) trades at $4.02, versus a $4.91 median fair value across its 2 active models — 22.2% above the current price. QOC: 5.8/10. Value Trap Risk: 26/100 (LOW). 2/13 models active.

Key Facts

Ticker
RXT
Price
$4.02
Quality Score
5.8/10
Value Trap Risk
26/100
Models Active
2/13
Last Updated
Strength: PWERM suggests +39.7% upside with 34% confidence
Risk: Limited model coverage (2/13) may reduce confidence

Is Rackspace Technology, Inc. (RXT) Undervalued or Overvalued in 2026?

According to CirclFi’s 2-model valuation engine, Rackspace Technology, Inc. (RXT) appears undervalued as of : the median of 2 independent fair value estimates is $4.91, 22.2% above the current price of $4.02. Estimates range from $4.21 to $5.62. RXT scores 5.8/10 on fundamental quality and 26/100 on value-trap risk.

For context, the median US equity CirclFi rates trades at an implied -20.1% versus its own 13-model consensus, across 3,777 rated companies as of 2026-10-07. RXT’s +22.2% gap is wider than that market norm, and the Software - Infrastructure sector median is -25.3%. Full market index →

This verdict compares price to intrinsic value only — it is not a buy or sell rating. For the decision case (bull vs bear arguments, risk factors, peers), read Should You Buy Rackspace Technology, Inc. Stock in 2026? →

What Fair Value Does Each Model Give RXT?

2 Intrinsic Value Models vs. Current Price ($4.02)

Core Models (Unlocked)
Model Fair Value Upside
Relative · Medium Conviction
 $4.21 +4.7%
Option-Based · Medium Conviction
 $5.62 +39.7%

All Models Active

All 2 models are displayed above.

What Is Rackspace Technology, Inc. (RXT) Worth in 2026?

According to the CirclFi Deep Alpha Valuation Engine, Rackspace Technology, Inc. presents a highly debated valuation profile at its current price of $4.02. The median intrinsic value is estimated at $4.91 (+22.2% median upside), masking a wide model spread between the 1 bullish models and 0 bearish models. Model dispersion is worth noting: PWERM targets $5.62 (+39.7%), versus Regime Cross at $4.21 (+4.7%). This +35.0% range highlights the importance of multi-model analysis rather than relying on any single methodology.

What Do the Models Say About RXT?

2 of 13 models are currently active for RXT. All 2 active models suggest the stock trades below fair value. Taken together, their median fair value for RXT is $4.91 — the figure CirclFi publishes as this stock's fair value. See which stocks rank higher →

How Does RXT Rank in Software - Infrastructure?

Among 187 Software - Infrastructure stocks, RXT ranks #98 by Quality of Company score. CirclFi's QOC score of 5.8/10 evaluates 32 fundamental signals. A score of 5.8 reflects mixed fundamentals.

See all Most Undervalued Software - Infrastructure Stocks →

Rackspace Technology, Inc.'s positioning within the Software - Infrastructure segment means that customer acquisition cost (CAC) plays an outsized role in fundamental analysis. The sector's unique characteristics — including enterprise adoption — shape both the opportunity set and risk profile.

Is RXT a Value Trap?

CirclFi's Value Trap algorithm assigns RXT a score of 26/100 (LOW). This indicates low risk. The financial profile does not exhibit typical value trap warning signs. The score cross-references apparent undervaluation against fundamental deterioration signals. Browse lowest value-trap stocks →

Multi-Model Methodology

2 of 13 models are active for Rackspace Technology, Inc.. Limited activation may indicate insufficient history. Each model applies a fundamentally different valuation philosophy. See the complete methodology →

According to the CirclFi Deep Alpha Valuation Engine, Rackspace Technology, Inc. scores 5.8 out of 10 on our 32-signal quality assessment, a solid rating that maintains reasonable quality metrics with some areas for improvement. The QOC score synthesizes profitability margins, revenue growth reliability, debt management, and capital allocation into a single metric designed to separate durable businesses from statistically cheap ones.

The gap between the most bullish and bearish model spans +35.0% — demonstrating why single-model analysis is dangerous. Browse all stocks with 13-model coverage →

Data Sources & Confidence

Every RXT valuation is built from SEC EDGAR XBRL filings — 700+ standardized financial tags. Macroeconomic context from FRED calibrates discount rates, while GDELT news sentiment feeds into our Sentiment SOTP model. All pipelines run daily. Read the complete data methodology →

Across RXT's 2 active models, average confidence is 42%. Lower confidence may reflect limited history or high volatility.

CirclFi's output is a research starting point, not a buy/sell signal. All data updates daily. Read the full methodology →

This analysis is produced by the CirclFi Valuation Engine using quantitative models applied to SEC EDGAR filings, public market feeds, and FRED macroeconomic indicators. It is not financial advice.

Read the full investment analysis: Should You Buy Rackspace Technology, Inc. Stock in 2026? →

Bull case, bear case, risk factors & peer comparison — updated daily

Which Similar Software - Infrastructure Stocks Should You Also Analyze?

11 related Software - Infrastructure stocks with 13-model coverage

ATGLAlpha Technology Group LimitedQOC 5.8NNNextNav Inc.QOC 5.8MLGOMicroAlgo Inc.QOC 5.8PDYNPalladyne AI Corp.QOC 5.8RPAYRepay Holdings CorporationQOC 5.8CRWVCoreWeave, Inc.QOC 5.8QNCQuantum eMotion Corp.QOC 4.8MSFTMicrosoft CorporationQOC 9.5VRSNVeriSign, Inc.QOC 8.0FTNTFortinet, Inc.QOC 9.7QLYSQualys, Inc.QOC 9.7

Read investment analysis: ATGL · NN · MLGO · PDYN · RPAY · CRWV · QNC · MSFT · VRSN · FTNT · QLYS

Which Other Stocks Have a Similar Quality Score to RXT?

7 companies across all industries closest to RXT’s Quality of Company score of 5.8/10.

PLBYPlayboy, Inc.QOC 5.8AIVApartment Investment and Management CompanyQOC 5.8CODXCo-Diagnostics, Inc.QOC 5.8PAMTPAMT CORPQOC 5.8BGDEBig Digital Energy, Inc.QOC 5.8OPADOfferpad Solutions Inc.QOC 5.8NVDANVIDIA CorporationQOC 10.0

Read investment analysis: PLBY · AIV · CODX · PAMT · BGDE · OPAD · NVDA

Where Does RXT Sit in CirclFi's Software - Infrastructure Rankings?

RXT is ranked against every other Software - Infrastructure stock CirclFi covers in each of these screens.

See all Software - Infrastructure stocks ranked →

What Else Do Investors Ask About Rackspace Technology, Inc.’s Valuation?

What is Rackspace Technology, Inc.'s intrinsic value in 2026?

CirclFi puts Rackspace Technology, Inc. (RXT)'s intrinsic value at $4.91 — the median of 2 independent model estimates as of 2026-10-07, ranging from $4.21 to $5.62. The Quality of Company score is 5.8/10 across 32 fundamental signals. All models use SEC EDGAR filings updated daily. See our methodology page for how each model works.

Is RXT overvalued or undervalued right now?

At $4.02, 2 of 2 active models suggest RXT may be undervalued, while 0 indicate potential overvaluation. The median of all 2 fair value estimates is $4.91, 22.2% above the current price of $4.02 — a consensus view that RXT is undervalued. The assessment depends on which methodology best fits Rackspace Technology, Inc.'s business model in Software - Infrastructure.

What does a Quality of Company score of 5.8 mean for RXT?

Rackspace Technology, Inc.'s QOC of 5.8/10 reflects 32 fundamental signals: profitability margins, revenue growth consistency, balance sheet leverage, free cash flow generation, and capital allocation efficiency. Scores between 5-7 reflect moderate fundamentals with areas for improvement.

How many valuation models does CirclFi run on RXT?

CirclFi analyzes RXT with 13 institutional-grade models daily: Bayesian DCF (Monte Carlo + jump-diffusion), EPV (Greenwald zero-growth), EROIC Spread (McKinsey reinvestment), First Chicago (3-scenario), Markov DDM (regime-switching), ML-RIV (machine learning residual income), Dynamic NAV (asset-based), PWERM (option-theoretic), Regime Cross-Sectional (relative), Sentiment SOTP (hybrid), CUCE Ensemble (meta-model), FTNN Topology (neural network), and RCMH-DCF (conditional regime). Currently 2 of 13 are active for this stock. Read the full methodology →

Is RXT a value trap in 2026?

Rackspace Technology, Inc.'s Value Trap score is 26/100 (LOW). This low score indicates the current valuation is not artificially depressed by fundamental deterioration, suggesting genuine opportunity rather than a trap. Browse stocks by value-trap risk →

Cite this analysis — “According to CirclFi’s 2-model valuation engine, Rackspace Technology, Inc. (RXT) has a median fair value of $4.91 — 22.2% above the current price of $4.02 — as of 2026-10-07.” Source: circlfi.com/stock/RXT/ · Methodology
Primary sources for this RXT valuation
  • Financial statements: Rackspace Technology, Inc. 10-K and 10-Q filings on SEC EDGAR (CIK 0001810019) — 700+ standardized XBRL tags, published by the U.S. Securities and Exchange Commission.
  • Discount-rate inputs: FRED, Federal Reserve Bank of St. Louis — risk-free rates, VIX, yield curve, inflation.
  • News sentiment: The GDELT Project — global media tone, input to the Sentiment SOTP model.
  • Model definitions: CirclFi methodology — the published specification for all 13 models, including the academic sources each one implements.

Market data for RXT as of ; valuations recomputed .