FIS
Fidelity National Information Services, Inc.
$33.42
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 197.1% above fair value
You pay
$33.42
Bear
$9.00
Fair
$11.25
Bull
$13.50
Bear
$9.00
-73.1%
$0.75 × 12x P/E
Fair
$11.25
-66.3%
$0.75 × 15x P/E
Bull
$13.50
-59.6%
$0.75 × 18x P/E
Adjust Assumptions
15.0x
0.75$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
44.6x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (37 analysts)
$47.54
Divergence from AlphaVal
76%
Summary
Applying a 15x P/E to adjusted EPS of $0.75, the base-case value is $11.25 per share.
Warnings
The company pays out 229% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Wall Street's average price target is $47.54 (from 37 analysts). Our estimate is 76% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples