Discounted Cash Flow (DCF) Analysis Levered

Xerox Holdings Corporation (XRX)

$15.09

-0.06 (-0.40%)

All numbers are in Millions, Currency in USD

Stock DCF: 17.94 | 15.09 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	9,830	9,066	7,022	7,038	7,107	6,589.79	6,110.23	5,665.56	5,253.25	4,870.95
Revenue (%)
Operating Cash Flow	1,140	1,333	548	629	159	596.76	553.33	513.06	475.72	441.10
Operating Cash Flow (%)
Capital Expenditure	-90	-65	-74	-68	-57	-58.71	-54.44	-50.48	-46.80	-43.40
Capital Expenditure (%)
Free Cash Flow	1,050	1,268	474	561	102	538.05	498.89	462.59	428.92	397.71

Weighted Average Cost Of Capital

Share price	$ 15.09
Beta	1.699
Diluted Shares Outstanding	208.98
Cost of Debt
Tax Rate	1.83
After-tax Cost of Debt	4.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.763
Total Debt	3,726
Total Equity	3,153.55
Total Capital	6,879.55
Debt Weighting	54.16
Equity Weighting	45.84
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	9,830	9,066	7,022	7,038	7,107	6,589.79	6,110.23	5,665.56	5,253.25	4,870.95
Operating Cash Flow	1,140	1,333	548	629	159	596.76	553.33	513.06	475.72	441.10
Capital Expenditure	-90	-65	-74	-68	-57	-58.71	-54.44	-50.48	-46.80	-43.40
Free Cash Flow	1,050	1,268	474	561	102	538.05	498.89	462.59	428.92	397.71
WACC
PV LFCF						426.53	366.02	314.10	269.54	231.31
SUM PV LFCF										1,876.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.05
Free cash flow (t + 1)	405.66
Terminal Value	6,705.14
Present Value of Terminal Value	4,552.86

Intrinsic Value

Enterprise Value	6,429.58
Net Debt	2,681
Equity Value	3,748.58
Shares Outstanding	208.98
Equity Value Per Share	17.94