* Note: Prices are in Million (M) USD.
Description:
Fiserv, Inc. is an American multinational financial technology company headquartered in Milwaukee, Wisconsin.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $999 M
Debt : $29,836 M
EBITDA : $9,298 M
Net Debt (Debt - Cash): $28,837 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Information technology services
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 12.58
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $1,563 M
Average Revenue: $8,250 M
Revenue Converted To Free Cash Flow (%): 18.9%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $20,456 M
Revenue 4 Years Ago (2020-12-31): $14,852 M
Last 5 Years Average Revenue Growth: 8%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $582 M
Share Count 5 Years Ago (2020-12-31): $683 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $11.79
Trailing 12-Month Earnings Per Share (EPS): $10.17
Average Earnings Per Share (EPS): $10.98
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 19.2%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $138
52-Week Low: $128
Threshold Price (15% Above 52-Week Low): $147
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $73,178 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 29 points to above Fiserv, Inc. (FI) stock.
Last 4 Years Avg PE 34.23, Fair Value PE 25, Industry Based PE 25, Growth Based PE 7, RCFC Based PE 27.16, ROE Based PE 25.38, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 22.98. Value-Trades has assined P/E value 22.98. Since an average (Current Year EPS + Next Year EPS) earning per share is $10.98.
The fair value of Fiserv, Inc. (FI) stock should be (22.98 x $10.98) = $252.31.
