Discounted Cash Flow (DCF) Analysis Unlevered
Xerox Holdings Corporation (XRX)
$18.53
+0.42 (+2.32%)
All numbers are in Millions, Currency in USD
Operating Data
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 (%) | ||||||||||
| EBITDA | 1,322 | 1,256 | 2,067 | 718 | -49 | 746.14 | 682.11 | 623.57 | 570.06 | 521.13 |
| EBITDA (%) | ||||||||||
| EBIT | 795 | 730 | 1,637 | 350 | -376 | 422.96 | 386.67 | 353.48 | 323.15 | 295.41 |
| EBIT (%) | ||||||||||
| Depreciation | 527 | 526 | 430 | 368 | 327 | 323.18 | 295.44 | 270.09 | 246.91 | 225.72 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Total Cash | 1,293 | 1,084 | 2,740 | 2,625 | 1,840 | 1,510.35 | 1,380.74 | 1,262.24 | 1,153.92 | 1,054.89 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 2,786 | 2,613 | 2,532 | 2,093 | 1,965 | 1,793.51 | 1,639.59 | 1,498.88 | 1,370.25 | 1,252.66 |
| Account Receivables (%) | ||||||||||
| Inventories | 915 | 818 | 694 | 843 | 696 | 602.02 | 550.36 | 503.13 | 459.95 | 420.48 |
| Inventories (%) | ||||||||||
| Accounts Payable | 1,108 | 1,091 | 1,053 | 983 | 1,069 | 806.76 | 737.53 | 674.23 | 616.37 | 563.47 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -105 | -90 | -65 | -74 | -68 | -60.16 | -55 | -50.28 | -45.97 | -42.02 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 18.53 |
|---|---|
| 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 | 10.714 |
| Total Debt | 4,537 |
| Total Equity | 3,872.45 |
| Total Capital | 8,409.45 |
| Debt Weighting | 53.95 |
| Equity Weighting | 46.05 |
| Wacc |
Build Up Free Cash
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 1,322 | 1,256 | 2,067 | 718 | -49 | 746.14 | 682.11 | 623.57 | 570.06 | 521.13 |
| EBIT | 795 | 730 | 1,637 | 350 | -376 | 422.96 | 386.67 | 353.48 | 323.15 | 295.41 |
| Tax Rate | 65.79% | 39.63% | -64.60% | 23.81% | 4.21% | 13.77% | 13.77% | 13.77% | 13.77% | 13.77% |
| EBIAT | 271.97 | 440.69 | 2,694.48 | 266.67 | -360.17 | 364.73 | 333.43 | 304.81 | 278.65 | 254.74 |
| Depreciation | 527 | 526 | 430 | 368 | 327 | 323.18 | 295.44 | 270.09 | 246.91 | 225.72 |
| Accounts Receivable | - | 173 | 81 | 439 | 128 | 171.49 | 153.92 | 140.71 | 128.63 | 117.59 |
| Inventories | - | 97 | 124 | -149 | 147 | 93.98 | 51.67 | 47.23 | 43.18 | 39.47 |
| Accounts Payable | - | -17 | -38 | -70 | 86 | -262.24 | -69.24 | -63.29 | -57.86 | -52.90 |
| Capital Expenditure | -105 | -90 | -65 | -74 | -68 | -60.16 | -55 | -50.28 | -45.97 | -42.02 |
| UFCF | 693.97 | 1,129.69 | 3,226.48 | 780.67 | 259.83 | 630.97 | 710.22 | 649.27 | 593.55 | 542.61 |
| WACC | ||||||||||
| PV UFCF | 595.09 | 631.73 | 544.67 | 469.61 | 404.90 | |||||
| SUM PV UFCF | 2,646 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.03 |
| Free cash flow (t + 1) | 553.46 |
| Terminal Value | 13,733.51 |
| Present Value of Terminal Value | 10,247.97 |
Intrinsic Value
| Enterprise Value | 12,893.97 |
|---|---|
| Net Debt | 2,697 |
| Equity Value | 10,196.97 |
| Shares Outstanding | 208.98 |
| Equity Value Per Share | 48.79 |