Fiserv, Inc. (FI) DCF Valuation
TGM's two-stage DCF values Fiserv, Inc. (FI) between $107.92 and $247.71 depending on assumptions, with a base case of $163.09. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (8.1%) reflects its beta.
What would today's price require?
$65.73 is justified only if free cash flow grows about -3.5% a year (fading to 2.5% long-run) at a 8.1% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 7.6%/yr | 9.1% | $107.92 |
| Base case | 10.6%/yr | 8.1% | $163.09 |
| Optimistic | 13.6%/yr | 7.1% | $247.71 |
| Analyst DCF (FMP) | independent reference — different model | $262.18 | |
Current Price
$65.73
Market-Implied Growth
-3.5%/yr
vs +13.8% 5Y actual
Model Scenario Range
$107.92 – $247.71
model output — not a price target
FI DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for FI (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $4.4B · 0.52B shares · net debt $28.2B
Estimated Fair Value
$236.84
+260.3% vs $65.73
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 10.6%/yr FCF growth and 10-year horizon fixed. Green = above today's $65.73; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.1% | $336 | $372 | $418 | $479 | $563 |
| 7.1% | $259 | $281 | $308 | $341 | $383 |
| 8.1% | $206 | $220 | $237 | $257 | $281 |
| 9.1% | $167 | $177 | $188 | $201 | $217 |
| 10.1% | $137 | $144 | $152 | $161 | $172 |
About Fiserv, Inc.
Fiserv, Inc., along with its global subsidiaries, provides a comprehensive array of technology solutions for payment processing and financial services around the world. The company's operations are divided into three core segments: Acceptance, Fintech, and Payments. The Acceptance division is dedicated to facilitating commerce for merchants. Its offerings encompass point-of-sale (POS) merchant acquiring, digital commerce solutions, and mobile payment services, alongside robust security and fraud protection features. Notable products within this segment include Carat, an integrated omnichannel commerce platform; Clover, a cloud-based solution for POS and business management; and Clover Connect, a specialized platform for independent software vendors. This segment's products are distributed through a variety of channels, including direct sales teams, strategic alliances with agent sales forces, independent software developers, financial institutions, and other key partners. The Fintech segment delivers systems for managing customer deposit and loan accounts, as well as tools for maintaining an institution's general ledger and central information files. Additionally, this division provides digital banking platforms, financial and risk management software, professional services and consulting, item processing and source capture technologies, and a range of other related products and services. The Payments segment specializes in various card transaction services, including the processing of debit, credit, and prepaid cards. It also offers security and fraud prevention, card production, print services, and a variety of network services. Beyond card-based solutions, this segment provides software and services for non-card digital payments, such as bill payment, account-to-account transfers, person-to-person (P2P) payments, electronic billing, and additional security and fraud protection products. Fiserv serves a diverse clientele that includes businesses, banks, credit unions, other financial institutions, merchants, and corporate clients. The company was founded in 1984 and is headquartered in Brookfield, Wisconsin.
- Sector
- Technology
- Industry
- Information Technology Services
- CEO
- Michael Patrick Lyons