FISV
Fiserv, Inc.
$49.86
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 32.8% below fair value
You pay
$49.86
Bear
$74.21
Fair
$74.21
Bull
$82.80
Bear
$74.21
+48.8%
3% stage 1 growth, 11% discount
Fair
$74.21
+48.8%
3% stage 1 growth, 11% discount
Bull
$82.80
+66.1%
4% stage 1 growth, 11% discount
Adjust Assumptions
3.0%
11.0%
3.0%
Key Value Driver
FCF growth rate (3% base case)
Terminal Value % of EV
33%
Implied Market Multiple
10.4x
Market is pricing in (growth)
0.0%
vs 3.0% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (61 analysts)
$62.31
Divergence from AlphaVal
19%
Summary
Using a two-stage FCF DCF with 3% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $74.21 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