Discounted Cash Flow (DCF) Analysis Unlevered

Xerox Holdings Corporation (XRX)

$18.53

+0.42 (+2.32%)
All numbers are in Millions, Currency in USD
Stock DCF: 48.79 | 18.53 | undervalue

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 10,2659,8309,0667,0227,0386,4345,881.845,377.074,915.614,493.75
Revenue (%)
EBITDA 1,3221,2562,067718-49746.14682.11623.57570.06521.13
EBITDA (%)
EBIT 7957301,637350-376422.96386.67353.48323.15295.41
EBIT (%)
Depreciation 527526430368327323.18295.44270.09246.91225.72
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 1,2931,0842,7402,6251,8401,510.351,380.741,262.241,153.921,054.89
Total Cash (%)
Account Receivables 2,7862,6132,5322,0931,9651,793.511,639.591,498.881,370.251,252.66
Account Receivables (%)
Inventories 915818694843696602.02550.36503.13459.95420.48
Inventories (%)
Accounts Payable 1,1081,0911,0539831,069806.76737.53674.23616.37563.47
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 10,2659,8309,0667,0227,0386,4345,881.845,377.074,915.614,493.75
EBITDA 1,3221,2562,067718-49746.14682.11623.57570.06521.13
EBIT 7957301,637350-376422.96386.67353.48323.15295.41
Tax Rate 65.79%39.63%-64.60%23.81%4.21%13.77%13.77%13.77%13.77%13.77%
EBIAT 271.97440.692,694.48266.67-360.17364.73333.43304.81278.65254.74
Depreciation 527526430368327323.18295.44270.09246.91225.72
Accounts Receivable -17381439128171.49153.92140.71128.63117.59
Inventories -97124-14914793.9851.6747.2343.1839.47
Accounts Payable --17-38-7086-262.24-69.24-63.29-57.86-52.90
Capital Expenditure -105-90-65-74-68-60.16-55-50.28-45.97-42.02
UFCF 693.971,129.693,226.48780.67259.83630.97710.22649.27593.55542.61
WACC
PV UFCF 595.09631.73544.67469.61404.90
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