A meaningful DCF fair value isn't available for Xerox Holdings Corporation (XRX) — its free-cash-flow and net-debt profile makes a standard discounted-cash-flow model unreliable (common for loss-makers and high-net-debt or recently-public companies), and no analyst DCF is published. Explore your own assumptions with the editable model below.
What would today's price require?
$2.94 is justified only if free cash flow grows about +2.4% a year (fading to 2.5% long-run) at a 11.5% required return — about in line with its track record.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 12.5% | N/A |
| Base case | 2.0%/yr | 11.5% | $2.43 |
| Optimistic | 5.0%/yr | 10.5% | $10.77 |
Current Price
$2.94
Market-Implied Growth
+2.4%/yr
vs +1.5% 5Y actual
Base-Case Model Value
N/A
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for XRX (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $363.0M · 0.13B shares · net debt $3.7B
Estimated Fair Value
$2.43
-17.2% vs $2.94
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $2.94; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 9.5% | $7.38 | $9.19 | $11.25 | $13.63 | $16.40 |
| 10.5% | $3.37 | $4.75 | $6.29 | $8.04 | $10.03 |
| 11.5% | $0.17 | $1.24 | $2.43 | $3.76 | $5.25 |
| 12.5% | N/A | N/A | N/A | $0.38 | $1.53 |
| 13.5% | N/A | N/A | N/A | N/A | N/A |
