Discounted Cash Flow (DCF) Analysis Levered

Xerox Holdings Corporation (XRX)

$17.18

-0.06 (-0.35%)
All numbers are in Millions, Currency in USD
Stock DCF: 28.44 | 17.18 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 10,2659,8309,0667,0227,0386,4345,881.845,377.074,915.614,493.75
Revenue (%)
Operating Cash Flow 341,1401,333548629558.12510.23466.44426.41389.81
Operating Cash Flow (%)
Capital Expenditure -105-90-65-74-68-60.16-55-50.28-45.97-42.02
Capital Expenditure (%)
Free Cash Flow -711,0501,268474561497.96455.22416.16380.44347.79

Weighted Average Cost Of Capital

Share price $ 17.18
Beta 1.689
Diluted Shares Outstanding 208.98
Cost of Debt
Tax Rate 4.21
After-tax Cost of Debt 2.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.758
Total Debt 4,537
Total Equity 3,590.33
Total Capital 8,127.33
Debt Weighting 55.82
Equity Weighting 44.18
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 10,2659,8309,0667,0227,0386,4345,881.845,377.074,915.614,493.75
Operating Cash Flow 341,1401,333548629558.12510.23466.44426.41389.81
Capital Expenditure -105-90-65-74-68-60.16-55-50.28-45.97-42.02
Free Cash Flow -711,0501,268474561497.96455.22416.16380.44347.79
WACC
PV LFCF 470.26405.99350.50302.60261.24
SUM PV LFCF 1,790.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.89
Free cash flow (t + 1) 354.75
Terminal Value 9,119.53
Present Value of Terminal Value 6,850.11

Intrinsic Value

Enterprise Value 8,640.71
Net Debt 2,697
Equity Value 5,943.71
Shares Outstanding 208.98
Equity Value Per Share 28.44