Discounted Cash Flow (DCF) Analysis Levered
Xerox Holdings Corporation (XRX)
$17.18
-0.06 (-0.35%)
All numbers are in Millions, Currency in USD
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 | 10,265 | 9,830 | 9,066 | 7,022 | 7,038 | 6,434 | 5,881.84 | 5,377.07 | 4,915.61 | 4,493.75 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 34 | 1,140 | 1,333 | 548 | 629 | 558.12 | 510.23 | 466.44 | 426.41 | 389.81 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -105 | -90 | -65 | -74 | -68 | -60.16 | -55 | -50.28 | -45.97 | -42.02 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | -71 | 1,050 | 1,268 | 474 | 561 | 497.96 | 455.22 | 416.16 | 380.44 | 347.79 |
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 | 10,265 | 9,830 | 9,066 | 7,022 | 7,038 | 6,434 | 5,881.84 | 5,377.07 | 4,915.61 | 4,493.75 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 34 | 1,140 | 1,333 | 548 | 629 | 558.12 | 510.23 | 466.44 | 426.41 | 389.81 |
Capital Expenditure | -105 | -90 | -65 | -74 | -68 | -60.16 | -55 | -50.28 | -45.97 | -42.02 |
Free Cash Flow | -71 | 1,050 | 1,268 | 474 | 561 | 497.96 | 455.22 | 416.16 | 380.44 | 347.79 |
WACC | ||||||||||
PV LFCF | 470.26 | 405.99 | 350.50 | 302.60 | 261.24 | |||||
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 |