Discounted Cash Flow (DCF) Analysis Unlevered

Xerox Holdings Corporation (XRX)

$16.1

-0.24 (-1.47%)
All numbers are in Millions, Currency in USD
Stock DCF: 56.09 | 16.1 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 9,8309,0667,0227,0387,1076,589.796,110.235,665.565,253.254,870.95
Revenue (%)
EBITDA 1,8441,8188871,4669591,130.381,048.11971.84901.11835.54
EBITDA (%)
EBIT 1,3181,3885191,139689816.97757.51702.38651.27603.87
EBIT (%)
Depreciation 526430368327270313.41290.60269.45249.84231.66
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 1,0842,7402,6251,8401,0451,574.701,460.101,353.851,255.321,163.97
Total Cash (%)
Account Receivables 2,5992,5052,0641,9542,0111,838.861,705.041,580.951,465.901,359.22
Account Receivables (%)
Inventories 818694843696797646.92599.84556.19515.71478.18
Inventories (%)
Accounts Payable 1,0911,0539831,0691,331930.87863.12800.31742.07688.06
Accounts Payable (%)
Capital Expenditure -90-65-74-68-57-58.71-54.44-50.48-46.80-43.40
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 16.1
Beta 1.687
Diluted Shares Outstanding 208.98
Cost of Debt
Tax Rate 0.91
After-tax Cost of Debt 2.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.395
Total Debt 3,726
Total Equity 3,364.63
Total Capital 7,090.63
Debt Weighting 52.55
Equity Weighting 47.45
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 9,8309,0667,0227,0387,1076,589.796,110.235,665.565,253.254,870.95
EBITDA 1,8441,8188871,4669591,130.381,048.11971.84901.11835.54
EBIT 1,3181,3885191,139689816.97757.51702.38651.27603.87
Tax Rate 39.63%21.78%23.81%3.58%0.91%17.94%17.94%17.94%17.94%17.94%
EBIAT 795.651,085.75395.431,098.24682.70670.38621.60576.36534.42495.52
Depreciation 526430368327270313.41290.60269.45249.84231.66
Accounts Receivable -94441110-57172.14133.82124.08115.05106.68
Inventories -124-149147-101150.0847.0843.6540.4837.53
Accounts Payable --38-7086262-400.13-67.74-62.81-58.24-54
Capital Expenditure -90-65-74-68-57-58.71-54.44-50.48-46.80-43.40
UFCF 1,231.651,630.75911.431,700.24999.70847.17970.92900.26834.75774
WACC
PV UFCF 790.64845.67731.80633.26548
SUM PV UFCF 3,549.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.15
Free cash flow (t + 1) 789.48
Terminal Value 15,329.66
Present Value of Terminal Value 10,853.54

Intrinsic Value

Enterprise Value 14,402.91
Net Debt 2,681
Equity Value 11,721.91
Shares Outstanding 208.98
Equity Value Per Share 56.09