Question 1

What is Xerox Holdings Corporation Common Stock's WACC?

Accepted Answer

Xerox Holdings Corporation Common Stock (XRX) has a Weighted Average Cost of Capital (WACC) of 6.77%. This is calculated using a Cost of Equity of 9.46% (via CAPM with a beta of 1.33) and a pre-tax Cost of Debt of 6.62%, with an equity weight of 5.15% in the capital structure.

Question 2

Is Xerox Holdings Corporation Common Stock's WACC high or low?

Accepted Answer

Xerox Holdings Corporation Common Stock's WACC of 6.77% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Xerox Holdings Corporation Common Stock's WACC calculated?

Accepted Answer

Xerox Holdings Corporation Common Stock's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 9.46% is derived from the CAPM model using a beta of 1.33. The pre-tax Cost of Debt (Rd) is 6.62%. The capital structure is 5.15% equity and 94.85% debt.

Xerox Holdings Corporation Common Stock (XRX) — WACC 分析

WACC 构成

解读

Xerox Holdings Corporation Common Stock（XRX）WACC：6.77%

WACC计算器

Xerox Holdings Corporation Common Stock（XRX） WACC 解读

XRX 公司分析

XRX DCF 估值

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