Discounted Cash Flow (DCF) Analysis Unlevered
Xerox Holdings Corporation (XRX)
$16.1
-0.24 (-1.47%)
All numbers are in Millions, Currency in USD
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 | 9,830 | 9,066 | 7,022 | 7,038 | 7,107 | 6,589.79 | 6,110.23 | 5,665.56 | 5,253.25 | 4,870.95 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 1,844 | 1,818 | 887 | 1,466 | 959 | 1,130.38 | 1,048.11 | 971.84 | 901.11 | 835.54 |
| EBITDA (%) | ||||||||||
| EBIT | 1,318 | 1,388 | 519 | 1,139 | 689 | 816.97 | 757.51 | 702.38 | 651.27 | 603.87 |
| EBIT (%) | ||||||||||
| Depreciation | 526 | 430 | 368 | 327 | 270 | 313.41 | 290.60 | 269.45 | 249.84 | 231.66 |
| 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 | 1,084 | 2,740 | 2,625 | 1,840 | 1,045 | 1,574.70 | 1,460.10 | 1,353.85 | 1,255.32 | 1,163.97 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 2,599 | 2,505 | 2,064 | 1,954 | 2,011 | 1,838.86 | 1,705.04 | 1,580.95 | 1,465.90 | 1,359.22 |
| Account Receivables (%) | ||||||||||
| Inventories | 818 | 694 | 843 | 696 | 797 | 646.92 | 599.84 | 556.19 | 515.71 | 478.18 |
| Inventories (%) | ||||||||||
| Accounts Payable | 1,091 | 1,053 | 983 | 1,069 | 1,331 | 930.87 | 863.12 | 800.31 | 742.07 | 688.06 |
| 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 | 9,830 | 9,066 | 7,022 | 7,038 | 7,107 | 6,589.79 | 6,110.23 | 5,665.56 | 5,253.25 | 4,870.95 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 1,844 | 1,818 | 887 | 1,466 | 959 | 1,130.38 | 1,048.11 | 971.84 | 901.11 | 835.54 |
| EBIT | 1,318 | 1,388 | 519 | 1,139 | 689 | 816.97 | 757.51 | 702.38 | 651.27 | 603.87 |
| Tax Rate | 39.63% | 21.78% | 23.81% | 3.58% | 0.91% | 17.94% | 17.94% | 17.94% | 17.94% | 17.94% |
| EBIAT | 795.65 | 1,085.75 | 395.43 | 1,098.24 | 682.70 | 670.38 | 621.60 | 576.36 | 534.42 | 495.52 |
| Depreciation | 526 | 430 | 368 | 327 | 270 | 313.41 | 290.60 | 269.45 | 249.84 | 231.66 |
| Accounts Receivable | - | 94 | 441 | 110 | -57 | 172.14 | 133.82 | 124.08 | 115.05 | 106.68 |
| Inventories | - | 124 | -149 | 147 | -101 | 150.08 | 47.08 | 43.65 | 40.48 | 37.53 |
| Accounts Payable | - | -38 | -70 | 86 | 262 | -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 | 1,231.65 | 1,630.75 | 911.43 | 1,700.24 | 999.70 | 847.17 | 970.92 | 900.26 | 834.75 | 774 |
| WACC | ||||||||||
| PV UFCF | 790.64 | 845.67 | 731.80 | 633.26 | 548 | |||||
| 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 |