EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Rackspace Hosting's Enterprise Value is $4,018 Mil.
Rackspace Hosting's Free Cash Flow for the trailing twelve months (TTM) ended in Sep. 2016 was $296 Mil. Therefore, Rackspace Hosting's EV-to-FCF for today is 13.59.
The historical rank and industry rank for Rackspace Hosting's EV-to-FCF or its related term are showing as below:
RAX's EV-to-FCF is not ranked *
in the Software industry.
Industry Median: 21.06 * Ranked among companies with meaningful EV-to-FCF only.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The historical data trend for Rackspace Hosting's EV-to-FCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Rackspace Hosting's EV-to-FCF
For the Information Technology Services subindustry, Rackspace Hosting's EV-to-FCF, along with its competitors' market caps and EV-to-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rackspace Hosting's EV-to-FCF Distribution in the Software Industry
For the Software industry and Technology sector, Rackspace Hosting's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Rackspace Hosting's EV-to-FCF falls into.
Rackspace Hosting's current Enterprise Value is $4,018 Mil.
Rackspace Hosting's Free Cash Flow for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $296 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
Rackspace Hosting's PE Ratio for today is calculated as:
Rackspace Hosting's share price for today is $31.99.
Rackspace Hosting's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $0.860.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Rackspace Hosting EV-to-FCF Related Terms
Thank you for viewing the detailed overview of Rackspace Hosting's EV-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Rackspace Hosting (Rackspace Hosting) Business Description
Rackspace Hosting Inc was incorporated in Delaware in March 2000. The Company, through its operating subsidiaries, is a provider of cloud computing services, managing web-based IT systems for small and medium-sized businesses as well as large enterprises. It offers a portfolio of integrated IT solutions for common business needs, including for ecommerce, web content management, website hosting, data services, office mail and collaboration, and private clouds. It also offers advisory services for technology strategy, security and compliance, application assessment and migration, and DevOps automation. It offers its solutions across a variety of IT form factors, including multi-tenant public cloud, dedicated single-tenant servers, private cloud, and hybrid cloud - all delivered with a commitment to open and standard technologies. Its marketing activities include web-based paid and natural search, participation in technology trade shows, conferences and customer events, advertisements in traditional and electronic (web and email-based) media, and targeted regional public relations activities. Its trademark includes Rackspace, Fanatical Support, and RackConnect. The Company is subject to U.S. federal income tax and various state, local, and international income taxes in numerous jurisdictions.
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