FISV · NMS
Fiserv, Inc.
Also onShortfallConsensus DriftCrosscheck
Implied value per share
USD 131.05
Market price
USD 51.93
Implied upside
+152.4%
10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31
Value Per Share
Same forecast, different terminal treatment. Percentages vs price.
Forecast Cashflows
Reporting currency (USD). Outflows negative.
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 | CAGR |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | USD 19.5bn | USD 20.2bn | USD 20.9bn | USD 21.6bn | USD 22.3bn | USD 22.9bn | USD 23.6bn | USD 24.3bn | USD 24.9bn | USD 25.5bn | +3.0% |
| EBIT | USD 5.0bn | USD 5.1bn | USD 5.3bn | USD 5.5bn | USD 5.7bn | USD 5.8bn | USD 6.0bn | USD 6.2bn | USD 6.3bn | USD 6.5bn | +3.0% |
| NOPAT | USD 4.0bn | USD 4.2bn | USD 4.3bn | USD 4.5bn | USD 4.6bn | USD 4.7bn | USD 4.9bn | USD 5.0bn | USD 5.1bn | USD 5.3bn | +3.0% |
| Add depreciation & amortisation | USD 3.1bn | USD 3.2bn | USD 3.4bn | USD 3.5bn | USD 3.6bn | USD 3.7bn | USD 3.8bn | USD 3.9bn | USD 4.0bn | USD 4.1bn | +3.0% |
| Less capital expenditure | USD -1.5bn | USD -1.8bn | USD -2.0bn | USD -2.3bn | USD -2.6bn | USD -2.9bn | USD -3.2bn | USD -3.5bn | USD -3.8bn | USD -4.2bn | +11.7% |
| Capex, % of revenue | 7.9% | 8.8% | 9.8% | 10.7% | 11.7% | 12.6% | 13.5% | 14.5% | 15.4% | 16.3% | - |
| Less increase in working capital | USD 265.9m | USD -110.4m | USD -110.1m | USD -109.6m | USD -108.7m | USD -107.6m | USD -106.2m | USD -104.4m | USD -102.3m | USD -99.9m | - |
| Free cashflow to firm | USD 5.9bn | USD 5.5bn | USD 5.5bn | USD 5.5bn | USD 5.5bn | USD 5.4bn | USD 5.4bn | USD 5.3bn | USD 5.2bn | USD 5.1bn | -1.6% |
| Discount factor | 0.9674 | 0.9054 | 0.8474 | 0.7931 | 0.7423 | 0.6947 | 0.6502 | 0.6086 | 0.5696 | 0.5331 | - |
| Present value | USD 5.7bn | USD 5.0bn | USD 4.7bn | USD 4.4bn | USD 4.1bn | USD 3.8bn | USD 3.5bn | USD 3.2bn | USD 3.0bn | USD 2.7bn | - |
| Present Value Of The Forecast | USD 39.9bn | ||||||||||
Discount Rate
Source shown per component. All overridable above.
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 1.000 | As reported |
| Cost of equity | 9.12% | Risk-free + beta x equity risk premium |
| Cost of debt | 5.78% | Risk-free + 89bp, the spread for a A- rating at 3.7x interest cover. Book interest / average debt was lower, at 5.7%. |
| Market capitalisation | USD 27.6bn | 48.7% of capital |
| Total debt | USD 29.1bn | 51.3% of capital, book value as a proxy |
| Tax rate | 19.0% | Effective, capped at statutory |
| WACC | 6.85% | E/V x Re + D/V x Rd x (1 - t) |
Terminal Value
Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.
Perpetuity growth at 2.50%
60% of EV
- Forecast FCFF, final year
- USD 5.1bn
- Capex at depreciation, working capital in reinvestment
- USD 6.9bn
- Less reinvestment at g/ROIC (30.6% of NOPAT)
- USD -2.1bn
- Capitalised
- USD 4.8bn
- ROIC (reported)
- 8.2%
- Terminal value, undiscounted
- USD 113.2bn
- Terminal value, discounted
- USD 60.3bn
- Enterprise value
- USD 100.3bn
- Less net debt
- USD 28.3bn
- Equity value
- USD 71.9bn
Exit at 6.3x EBITDA
47% of EV
- Terminal value, undiscounted
- USD 66.9bn
- Terminal value, discounted
- USD 35.6bn
- Enterprise value
- USD 75.6bn
- Less net debt
- USD 28.3bn
- Equity value
- USD 47.2bn
Spread between methods: 41%.
Sensitivity
Value per share (USD) by discount rate and long-run growth.
| Long-run growth | |||||
|---|---|---|---|---|---|
| Discount rate | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
| 4.85% | 231.75 | 247.61 | 271.12 | 308.50 | 375.22 |
| 5.85% | 169.13 | 173.73 | 180.30 | 189.87 | 204.38 |
| 6.85% | 129.84 | 130.19 | 131.05 | 132.62 | 135.22 |
| 7.85% | 102.87 | 101.43 | 100.05 | 98.76 | 97.58 |
| 8.85% | 84.76 | 83.21 | 81.65 | 80.10 | 78.55 |
Outlined: this model. Green text: above today's price of 51.93. Shading: distance from this model's own value.
Priced In
What each input would have to be to justify the current price, one at a time.
| Input | Actual | Model | Implied | Gap |
|---|---|---|---|---|
| Revenue growth, a year | 6.1% | 1.9% | -5.0% | |
| EBIT margin | 28.7% | 25.4% | 10.6% | |
| Discount rate | - | 6.8% | 11.5% |
Live formulas, not pasted numbers - edit a driver and the workbook reprices.
Yahoo Finance and RBA data. General information, not advice. Methodology.