Xerox (XRX): Evaluating Valuation After New Digital Press Innovations Unveiled for Industry Expo

Xerox Holdings (XRX) is preparing for a major appearance at the upcoming PRINTING United Expo 2025, where it will showcase its latest digital presses and comprehensive production solutions. The company plans to feature interactive software demos and highlight client successes throughout the event.

See our latest analysis for Xerox Holdings.

After years of challenging performance trends, Xerox Holdings has been working to recapture momentum with fresh product launches and high-profile event appearances. While the latest news showcases innovation and industry recognition, the company’s share price has not yet reflected a turnaround. Its 1-year total shareholder return is down 69.35%, and the 2024 year-to-date share price return is negative 62.47%, with losses accelerating over recent months.

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Given steep share price declines, but a sizable discount to analyst price targets, is Xerox now an undervalued turnaround play for patient investors, or has the market already accounted for any future rebound in growth?

Most Popular Narrative: 69.6% Undervalued

The prevailing narrative places Xerox's fair value at $10.21, which is more than triple the last close price of $3.10. This large gap comes from bullish financial forecasts and expectations for a substantial operational turnaround ahead.

*"The shift from a geographic to a business unit-led operating model is expected to improve organizational efficiencies and align better with economic buyers, positively impacting revenue and net margins in the long term. The acquisitions of ITsavvy and Lexmark are anticipated to stabilize revenue and enhance operating income margins by diversifying revenue streams and increasing market reach, affecting both revenue and operating margins."*

Read the complete narrative.

Curious how such a bold transformation could potentially reboot Xerox's fortunes? This narrative hints at sweeping changes in structure, new business units, and major synergy assumptions. See what ambitious figures really shape this valuation.

Result: Fair Value of $10.21 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the ongoing revenue decline and the difficult integration of recent acquisitions could undermine the anticipated turnaround story for Xerox Holdings.

Find out about the key risks to this Xerox Holdings narrative.

Build Your Own Xerox Holdings Narrative

If you want to dig into the numbers for yourself, you can quickly build your own view of Xerox Holdings’ future with no deep research required. Do it your way

A great starting point for your Xerox Holdings research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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