FISV
Fiserv, Inc.
$57.13
Platform & Compounding FCF
50%
Two-stage FCF DCF
Mild
·
Conviction
Fair Value
Trading 11.9% below fair value
You pay
$57.13
Bear
$55.76
Fair
$64.88
Bull
$76.28
Bear
$55.76
-2.4%
3% stage 1 growth, 11% discount
Fair
$64.88
+13.6%
4% stage 1 growth, 11% discount
Bull
$76.28
+33.5%
5% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (4% base case)
Terminal Value % of EV
34%
Implied Market Multiple
13.5x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $73.67 from 60 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $64.88 per share.
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