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 8.69%. This is calculated using a Cost of Equity of 9.70% (via CAPM with a beta of 1.36) and a pre-tax Cost of Debt of 8.59%, with an equity weight of 8.70% 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 8.69% falls within the typical 8-12% range for mid-cap growth companies. 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 9.70% is derived from the CAPM model using a beta of 1.36. The pre-tax Cost of Debt (Rd) is 8.59%. The capital structure is 8.70% equity and 91.30% debt.

Xerox Holdings Corporation Common Stock (XRX) — WACC 分析

WACC 构成

解读

Xerox Holdings Corporation Common Stock（XRX）WACC：8.69%

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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