Xerox Holdings Corporation (XRX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-4306.4%

-$52.79

vs $1.26 price

Levered DCF

$73.55

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.88

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-0.29×	-0.78×	-210.21×	-6.79×	-8.84×	27.28×	12.71×	13.63×
P/B	0.46×	0.81×	0.99×	0.64×	0.93×	0.83×	1.41×	0.94×
P/S	0.04×	0.17×	0.4×	0.32×	0.59×	0.69×	0.9×	0.5×
EV / EBITDA	44.34×	-4.94×	19.5×	144.1×	-139.65×	9.81×	7.41×	7.33×
Gross margin	27.1%	31.5%	33.6%	32.6%	34.1%	34.8%	40.3%	39.9%
Operating margin	-0.8%	2.6%	5.1%	3.0%	4.5%	4.3%	15.3%	11.1%
Net margin	-14.7%	-21.2%	0.0%	-4.5%	-6.5%	2.7%	7.1%	3.7%
Current ratio	1.12×	1.12×	1.14×	1.23×	1.66×	2.33×	1.79×	1.44×
Debt / equity	6.45×	2.78×	1.26×	1.11×	1.02×	0.82×	0.8×	1×
Interest coverage	-0.23×	1.34×	5.19×	2.33×	3.33×	3.19×	13.22×	9.58×
Dividend yield	23.7%	13.5%	6.0%	7.6%	5.0%	4.7%	3.0%	5.5%
Payout ratio	-6.9%	-10.7%	16500.0%	-54.0%	-45.3%	119.8%	37.8%	74.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-156.4%	-102.4%	0.0%	-9.1%	-10.3%	3.3%	11.1%	6.9%
Return on invested capital	-0.8%	2.5%	-0.2%	2.3%	2.8%	1.8%	8.5%	4.9%
Return on assets	-10.5%	-15.8%	0.0%	-2.8%	-3.4%	1.3%	4.3%	2.4%
Free cash flow yield	86.4%	44.6%	23.7%	4.5%	13.5%	9.8%	15.5%	21.4%
Earnings yield	-343.3%	-126.2%	0.0%	-14.1%	-11.0%	4.0%	7.9%	7.3%
Enterprise value	$4B	$4.1B	$5.7B	$5.2B	$6.8B	$7B	$10.1B	$9.1B
Net debt / EBITDA	41.04×	-3.66×	10.1×	80.83×	-55.02×	3.03×	1.39×	3.35×
Cash conversion cycle (days)	54	58	64	64	73	98	78	81