Built from weaker models, sales multiples or analyst targets, so treat it as a rough guide.
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Valued as a cyclical company: P/E comparison and Discounted cash flow.
ACCE opinionXerox Holdings Corporation Common Stock (XRX)
Fair value (2 models)
Not available
ACCE price target
$2.60
Rating
Not rated
Horizon
12 months
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Price used: $2.56 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
60
out of 100
Analysts
25% buy
4 covering
1-year return
-26.4%
Dividend yield
3.57%
Xerox Holdings Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Xerox sells multifunction printers, production print systems, and managed print services to businesses, and it has spent recent years shrinking its legacy hardware footprint while pushing its services and workflow software. Its moat is thinner than the Xerox name suggests: the installed base of managed print contracts gives it recurring revenue, but the core hardware business faces secular decline as offices print less. The near-term story rests on the Lexmark integration, which should carry the combined company's cost synergies and a more diversified product line. The stock trades at a forward P/E of 2.6 with a 7.3% operating margin and reported revenue growth of 22.0%, but ROE of -97.1% signals a balance sheet carrying heavy debt and past losses, so the cheapness is the reason to look closer, not the conclusion. A deeper look should focus on whether the operating margin is durable and how fast debt is being paid down.