As of May 23, 2025, Fidelity National Information Services Inc's estimated intrinsic value ranges from $53.27 to $124.32 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $124.32 | +58.7% |
| Discounted Cash Flow (5Y) | $101.71 | +29.8% |
| Dividend Discount Model (Multi-Stage) | $74.15 | -5.4% |
| Dividend Discount Model (Stable) | $53.27 | -32.0% |
| Earnings Power Value | $80.26 | +2.5% |
Is Fidelity National Information Services Inc (FIS) undervalued or overvalued?
With the current market price at $78.34, the stock appears to be moderately undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Fidelity National Information Services Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.59 | 0.7 |
| Cost of equity | 6.6% | 8.8% |
| Cost of debt | 4.0% | 5.1% |
| Tax rate | 32.1% | 35.4% |
| Debt/Equity ratio | 0.27 | 0.27 |
| After-tax WACC | 5.7% | 7.6% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $102 | $64,696M | 88.9% |
| 10-Year Growth | $124 | $76,583M | 79.4% |
| 5-Year EBITDA | $33 | $28,718M | 74.9% |
| 10-Year EBITDA | $51 | $37,856M | 58.3% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $3,501M |
| Discount Rate (WACC) | 7.6% - 5.7% |
| Enterprise Value | $45,908M - $60,928M |
| Net Debt | $11,215M |
| Equity Value | $34,693M - $49,713M |
| Outstanding Shares | 526M |
| Fair Value | $66 - $95 |
| Selected Fair Value | $80.26 |
| Metric | Value |
|---|---|
| Market Capitalization | $41193M |
| Enterprise Value | $52408M |
| Trailing P/E | 51.30 |
| Forward P/E | 38.26 |
| Trailing EV/EBITDA | 7.10 |
| Current Dividend Yield | 193.13% |
| Dividend Growth Rate (5Y) | -2.02% |
| Debt-to-Equity Ratio | 0.27 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $37.29 |
| Discounted Cash Flow (5Y) | 25% | $25.43 |
| Dividend Discount Model (Multi-Stage) | 20% | $14.83 |
| Dividend Discount Model (Stable) | 15% | $7.99 |
| Earnings Power Value | 10% | $8.03 |
| Weighted Average | 100% | $93.57 |
Based on our comprehensive valuation analysis, Fidelity National Information Services Inc's weighted average intrinsic value is $93.57, which is approximately 19.4% above the current market price of $78.34.
Key investment considerations:
Given these factors, we believe Fidelity National Information Services Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.