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Xerox Holdings Corporation Common Stock (XRX) — WACC Analysis

WACC Breakdown

Xerox Holdings Corporation Common Stock (XRX) has a weighted average cost of capital (WACC) of 10.0%. The cost of equity is 10.5%, derived from a beta of 1.39 and a risk-free rate of 5.2%. The after-tax cost of debt is 10.0%. The capital structure is 7.9% equity and 92.1% debt.

Interpretation

A WACC of 10.0% is moderate, reflecting the market's balanced risk assessment of Xerox Holdings Corporation Common Stock.

Investors can compare XRX's WACC of 10.0% against industry peers to gauge its relative financing costs. A beta of 1.39 reflects the stock's volatility relative to the broader market.

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VALUATION

XRX WACC: 10.04% for Xerox Holdings Corporation Common Stock

Current inputs imply a 10.55% cost of equity and a 9.99% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Xerox Holdings Corporation Common Stock Common Stock (XRX) WACC Results
Weighted Average Cost of Capital
10.04%
Cost of Equity
10.55%
Risk-Free Rate5.22%
Beta1.39
Market Risk Premium4.23%
Cost of Debt
9.99%
Pre-Tax Cost of Debt9.99%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 7.88%($361.11M)
Debt: 92.12%($4223.00M)
Equity Component
0.83%
7.88% × 10.55%
Debt Component
9.21%
92.12% × 9.99%

Xerox Holdings Corporation Common Stock (XRX) WACC in context

Xerox Holdings Corporation Common Stock (XRX) currently screens with an estimated WACC of 10.04%. That blends a 10.55% cost of equity, a 9.99% pre-tax cost of debt, and a 7.88% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What XRX WACC implies

A 10.04% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates XRX

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.39 and equity accounts for 7.88% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.