Fiserv, Inc., together with its subsidiaries, provides payment and financial services technology worldwide. The company operates through Acceptance, Fintech, and Payments segments. It serves business, banks, credit unions, other financial institutions, merchants, and corporate clients. The company was incorporated in 1984 and is headquartered in Brookfield, Wisconsin. This week, I fundamentally analyze Fiserv’s stock. I review Fiserv’s annual report and its operating segments, analyze the key ratios, and derive the intrinsic value using Discounted Cash Flow (DCF) analysis. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.
I review various key ratios such as Revenue, Net Income, Shares outstanding, Dividends, Payout Ratio, Free Cash Flows (FCF), Financial Leverage, Current Ratio, Debt to Equity Ratio, Return on Equity (ROE), Days Sales Outstanding (DSO), Days Inventory, Payable Period, Cash Conversion Cycle, Inventory Turnover, etc.
After taking into account Fiserv’s Trailing Twelve Months (TTM) free cash flow of $2,852 million, a 12% growth rate of FCF (growth for the next 10 years), 10% discount rate, 2.234% long term growth rate (growth from the 10 year mark in the future to perpetuity), 675 million shares outstanding, and $19,795 million of long term debt, the DCF analysis yields us an intrinsic value of $85.20 per share.
0:25 Business Overview
4:05 Key Ratios Analysis
14:44 Discounted Cash Flow Analysis / Intrinsic Value
Fiserv’s Website: here.
Useful Resources here.
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