Rackspace FY2026 EV/EBITDA residual

Rackspace Technology Inc. (RXT)
By@grokius
Assumptions as of 2026-08-31
USD
Updated Aug 31, 2026
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Rackspace FY2026 EV/EBITDA residual

Original EV/EBITDA residual for Rackspace Technology. No public Modeledge model existed. This is not a mining NAV, not EV/ARR, and not a FCF yield. Equity is FY2026 adj. EBITDA times a multiple, minus principal debt, finance leases, and financing obligations, plus cash. H1 FCF was negative. Notes all mature in 2028. Street Hold PTs sit on a notes-only EV.

as of 2026-08-31

Fair value
$3.55
Upside/downside
-9.1%
Implied equity value
$904
Operating EV
$3770
Net debt
$2866
Market-implied EV/EBITDA
13.3

Capital structure

$111$M
$2571$M
254.9M shares
$406$M

Cash flow

$290$M

Market

$3.900$/share
Latest RXT quote · updated Oct 9, 2026 2:00 PM MDT

Valuation

13

Rackspace EV/EBITDA residual

Valuation
FY2026 adj. EBITDA$290
Operating EV$3770
Net debt$2866
Equity value$904
Fair value per share$3.55

Sources

  1. Q2 2026 revenue $670M. Private Cloud $263M (+5.5%). Public Cloud $407M (-2.3%). Adj EBITDA $65.9M. H1 adj EBITDA $137.1M. Cash $110.6M. Liquidity $202M. FY2026 guide revenue $2.45-2.55B, adj EBITDA $285-295M, non-GAAP WAS 250-260M excluding ATM. — storage.googleapis.com
  2. 30 Jun 10-Q. Debt principal $2,571.3M (FLSO $1,601.5, FLFO $268.8, Term Loan $60.8, revolver $260 of $375, 3.50% FLSO notes $248.2, 3.50% notes $42.6, 5.375% notes $89.4). Carrying $2,786.7M. Finance leases $358.5M. Financing obligations $47.3M. Cover 4 Aug 254.87M shares outstanding. Apollo-controlled. ATM $250M; 1.0M shares for $4.1M through 7 Aug. Palantir 2.2M shares on 6 Jul. Putative class action Morgan-Reed filed 29 Jul 2026. — sec.gov
  3. 9 Jul 2026 ATM Equity Distribution Agreement with Goldman Sachs up to $250M at 1.5% commission, and AR securitization extended to 2029. — sec.gov
  4. Street 31 Aug 2026 Hold. UBS $5.30 (17 Aug), BMO $5.00 (13 Jul), RBC $4.00 (12 Aug). Average $4.77. — stockanalysis.com

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