Xerox Holdings Corporation Warrants

XRXDW

TechnologyInformation Technology ServicesNASDAQ

$0.29

Market Cap: $227.29M

Xerox Holdings Corporation Warrants (XRXDW) Valuation Summary

Updated May 11, 2026 18:02

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.19 – $226.67	$43.25	+14670.7%
Revenue DCF 10Y	$1.16 – $206.62	$40.49	+13726.9%
▸ Trading Multiples
EV/Revenue	$56.33 – $122.40	$100.01	+34056.7%

Valuation History

DCF Analysis

Xerox Holdings Corporation Warrants (XRXDW) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$40.49

Market Price

$0.29

Upside / Downside

+13726.9%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -0.9% to a target of 10.2% over 5 years, discounted at a WACC of 7.2%, Xerox Holdings Corporation Warrants (XRXDW) has an intrinsic value of $40.49 per share (range: $1.16 – $206.62).

Key Assumptions

Current Operating Margin

-0.9%

Target Operating Margin

10.2%

WACC

7.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.9%

Target CapEx/Rev

6.5%

D&A/Revenue

4.3%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	7,613	8.4%	1.3%	99	78	328	(108)	298	-0	-0
2027	7,537	-1.0%	3.5%	266	210	325	(149)	-15	401	362
2028	7,441	-1.3%	5.8%	429	339	321	(189)	-19	490	412
2029	7,437	-0.1%	8.0%	595	470	321	(231)	-1	561	440
2030	7,432	-0.1%	10.2%	761	601	321	(272)	-1	650	476
2031	7,466	0.5%	10.2%	765	604	322	(316)	7	604	413
2032	7,538	1.0%	10.2%	772	610	325	(361)	14	560	357
2033	7,649	1.5%	10.2%	783	619	330	(409)	22	517	308
2034	7,800	2.0%	10.2%	799	631	336	(461)	30	476	265
2035	7,995	2.5%	10.2%	819	647	345	(517)	39	436	226

Enterprise Value Bridge

Sum of PV(FCFF)3,259

Terminal Value (Gordon Growth at 3.0%)10,792

PV of Terminal Value5,596

Enterprise Value8,855

(–) Net Debt3,735

Equity Value5,120

(÷) Shares Outstanding126

Fair Value per Share$40.49

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
5.2%	$-5	$48	$101	$154	$207
6.2%	$-10	$25	$61	$97	$133
7.2%	$-13	$14	$40	$67	$94
8.2%	$-15	$6	$28	$49	$71
9.2%	$-17	$1	$19	$37	$55

Current price: $0.29. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 20.0% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Xerox Holdings Corporation Warrants (XRXDW) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$43.25

Market Price

$0.29

Upside / Downside

+14670.7%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-0.9%

Target Operating Margin

10.2%

WACC

7.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.9%

Target CapEx/Rev

6.5%

D&A/Revenue

4.3%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	7,613	8.4%	1.3%	99	78	328	(151)	298	-43	-41
2027	7,537	-1.0%	3.5%	266	210	325	(234)	-15	317	285
2028	7,441	-1.3%	5.8%	429	339	321	(314)	-19	365	307
2029	7,437	-0.1%	8.0%	595	470	321	(398)	-1	394	309
2030	7,432	-0.1%	10.2%	761	601	321	(481)	-1	442	324

Enterprise Value Bridge

Sum of PV(FCFF)1,184

Terminal Value (Gordon Growth at 3.0%)10,947

PV of Terminal Value8,021

Enterprise Value9,205

(–) Net Debt3,735

Equity Value5,470

(÷) Shares Outstanding126

Fair Value per Share$43.25

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
5.2%	$0	$57	$113	$170	$227
6.2%	$-9	$29	$67	$105	$144
7.2%	$-14	$15	$43	$72	$101
8.2%	$-17	$6	$29	$51	$74
9.2%	$-19	$-0	$19	$38	$57

Current price: $0.29. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 20.0% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$100.01

Market Price

$0.29

Upside / Downside

+34056.7%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Xerox Holdings Corporation Warrants (XRXDW) has a fair value of $100.01 based on 9 comparable companies in the Information Technology Services industry.

EV/Revenue Valuation — Information Technology Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Xerox Holdings Corporation WarrantsXRXDW	37	0.5x	0.6x
International Business Machines CorporationIBM	215,948	4.0x	3.8x
Accenture plcACN	111,037	1.5x	1.5x
Infosys LimitedINFY	52,034	2.5x	2.6x
Fiserv, Inc.FISV	29,669	2.7x	2.9x
Cognizant Technology Solutions CorporationCTSH	24,490	1.1x	1.1x
Fidelity National Information Services, Inc.FIS	22,484	2.4x	2.4x
Wipro LimitedWIT	20,744	1.9x	—
Broadridge Financial Solutions, Inc.BR	17,291	2.9x	2.7x
Leidos Holdings, Inc.LDOS	16,366	1.2x	1.3x
Industry Median		2.4x	2.5x
(*) Revenue		7,022	6,183
= Enterprise Value		17,032	15,735
(-) Net Debt		3,735	3,735
Equity Value		13,297	12,000
(/) Outstanding shares		126	126
Fair Price		$105	$95

Selected Fair Value (avg of trailing + forward)

$100.01

+34056.7%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.19 – $226.67

$43.25

+14670.7%

Revenue DCF 10Y

$1.16 – $206.62

$40.49

+13726.9%

▸ Trading Multiples

EV/Revenue

$56.33 – $122.40

$100.01

+34056.7%

DCF Analysis

Xerox Holdings Corporation Warrants (XRXDW) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$40.49

Market Price

$0.29

Upside / Downside

+13726.9%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-0.9%

Target Operating Margin

10.2%

WACC

7.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.9%

Target CapEx/Rev

6.5%

D&A/Revenue

4.3%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	7,613	8.4%	1.3%	99	78	328	(108)	298	-0	-0
2027	7,537	-1.0%	3.5%	266	210	325	(149)	-15	401	362
2028	7,441	-1.3%	5.8%	429	339	321	(189)	-19	490	412
2029	7,437	-0.1%	8.0%	595	470	321	(231)	-1	561	440
2030	7,432	-0.1%	10.2%	761	601	321	(272)	-1	650	476
2031	7,466	0.5%	10.2%	765	604	322	(316)	7	604	413
2032	7,538	1.0%	10.2%	772	610	325	(361)	14	560	357
2033	7,649	1.5%	10.2%	783	619	330	(409)	22	517	308
2034	7,800	2.0%	10.2%	799	631	336	(461)	30	476	265
2035	7,995	2.5%	10.2%	819	647	345	(517)	39	436	226

Enterprise Value Bridge

Sum of PV(FCFF)3,259

Terminal Value (Gordon Growth at 3.0%)10,792

PV of Terminal Value5,596

Enterprise Value8,855

(–) Net Debt3,735

Equity Value5,120

(÷) Shares Outstanding126

Fair Value per Share$40.49

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
5.2%	$-5	$48	$101	$154	$207
6.2%	$-10	$25	$61	$97	$133
7.2%	$-13	$14	$40	$67	$94
8.2%	$-15	$6	$28	$49	$71
9.2%	$-17	$1	$19	$37	$55

Current price: $0.29. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 20.0% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$100.01

Market Price

$0.29

Upside / Downside

+34056.7%

Verdict

Undervalued

EV/Revenue Valuation — Information Technology Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Xerox Holdings Corporation WarrantsXRXDW	37	0.5x	0.6x
International Business Machines CorporationIBM	215,948	4.0x	3.8x
Accenture plcACN	111,037	1.5x	1.5x
Infosys LimitedINFY	52,034	2.5x	2.6x
Fiserv, Inc.FISV	29,669	2.7x	2.9x
Cognizant Technology Solutions CorporationCTSH	24,490	1.1x	1.1x
Fidelity National Information Services, Inc.FIS	22,484	2.4x	2.4x
Wipro LimitedWIT	20,744	1.9x	—
Broadridge Financial Solutions, Inc.BR	17,291	2.9x	2.7x
Leidos Holdings, Inc.LDOS	16,366	1.2x	1.3x
Industry Median		2.4x	2.5x
(*) Revenue		7,022	6,183
= Enterprise Value		17,032	15,735
(-) Net Debt		3,735	3,735
Equity Value		13,297	12,000
(/) Outstanding shares		126	126
Fair Price		$105	$95

Selected Fair Value (avg of trailing + forward)

$100.01

+34056.7%