FI
Fiserv, Inc.
$63.80
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 52.2% below fair value
You pay
$63.80
Bear
$128.81
Fair
$133.41
Bull
$147.49
Bear
$128.81
+101.9%
3% stage 1 growth, 11% discount
Fair
$133.41
+109.1%
3% stage 1 growth, 11% discount
Bull
$147.49
+131.2%
4% stage 1 growth, 11% discount
Adjust Assumptions
3.3%
11.0%
3.0%
Key Value Driver
FCF growth rate (3% base case)
Terminal Value % of EV
33%
Implied Market Multiple
8.3x
Market is pricing in (growth)
-3.3%
vs 3.4% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (31 analysts)
$64.33
Divergence from AlphaVal
107%
Summary
Using a two-stage FCF DCF with 3% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $133.41 per share.
Warnings
Wall Street's average price target is $64.33 (from 31 analysts). Our estimate is 107% above the consensus -- consider that gap carefully.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions