Xerox Holdings Corp. (XRX.O): Model Update

Research evidence excerpt

Xerox Holdings Corp. (XRX.O): Model Update

Xerox Holdings Corp. (XRX.O)

07 July 2026 Citi Research

Xerox Holdings Corp.

Valuation

Xerox currently competes with similar offerings from mature global Imaging Hardware companies like Seiko Epson, Canon,

Brother, Konica Minolta, and Ricoh in Asia, and with HP Inc from the United States. We value XRX shares at $2.50 based on a

~0.6x EV/Sales multiple, which is inline with peer comps.We note that despite the company’s differentiation of financing-

allocated debt in its capital structure, we include it in our EV calculation as the debt exists regardless.

Risks

This stock is High Risk based upon our quantitative model owing to its volatility.

Specific risks that could cause the stock to vary from our estimates and/or target price include: The potential for macro changes

and the resulting impact on capital spending, employment rates, and pages printed, leading to the impacts on business demand

for office printing equipment. The potential for changes to cost savings as a result of productivity initiatives like Project Own It,

as well as the potential for variance in mix of revenues from the higher end of the company’s portfolio. The potential for

innovations developed within the company to be a material revenue contributor (e.g., digital packaging & print, AI workflow

assistants, 3D printing and digital manufacturing, sensors and services for IoT, cleantech, security technologies). Finally, as the

print industry continues to consolidate, as printing and office technology mature, this could cause Xerox to either be an

acquisition target or have the company feel the need to make acquisitions itself, in addition to the potential for the company to

be taken private.