Price to Operating Profit (P/OP)
since 2005
Calculation
Fiserv Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2022 | 27.24 | = | 95.56 | ÷ | 3.51 | 3.51 | = | 2,288 | ÷ | 652,196,905 | |
| Feb 26, 2021 | 41.70 | = | 115.37 | ÷ | 2.77 | 2.77 | = | 1,852 | ÷ | 669,459,877 | |
| Feb 27, 2020 | 45.81 | = | 108.54 | ÷ | 2.37 | 2.37 | = | 1,609 | ÷ | 679,098,783 | |
| Feb 21, 2019 | 18.93 | = | 84.75 | ÷ | 4.48 | 4.48 | = | 1,753 | ÷ | 391,586,971 | |
| Feb 22, 2018 | 19.17 | = | 71.06 | ÷ | 3.71 | 3.71 | = | 1,532 | ÷ | 413,215,728 | |
| Feb 23, 2017 | 17.06 | = | 57.45 | ÷ | 3.37 | 3.37 | = | 1,445 | ÷ | 429,127,900 | |
| Feb 19, 2016 | 16.44 | = | 48.33 | ÷ | 2.94 | 2.94 | = | 1,311 | ÷ | 445,874,602 | |
| Feb 20, 2015 | 15.60 | = | 39.53 | ÷ | 2.53 | 2.53 | = | 1,210 | ÷ | 477,385,630 | |
| Feb 20, 2014 | 13.71 | = | 28.59 | ÷ | 2.08 | 2.08 | = | 1,061 | ÷ | 508,973,046 | |
| Feb 22, 2013 | 10.14 | = | 20.06 | ÷ | 1.98 | 1.98 | = | 1,056 | ÷ | 534,014,116 | |
| Feb 24, 2012 | 9.31 | = | 16.72 | ÷ | 1.80 | 1.80 | = | 996 | ÷ | 554,354,588 | |
| Feb 24, 2011 | 9.00 | = | 15.51 | ÷ | 1.72 | 1.72 | = | 1,007 | ÷ | 584,308,404 | |
| Feb 26, 2010 | 7.77 | = | 12.06 | ÷ | 1.55 | 1.55 | = | 946 | ÷ | 609,281,616 | |
| Feb 27, 2009 | 5.72 | = | 8.16 | ÷ | 1.43 | 1.43 | = | 890 | ÷ | 624,001,668 | |
| Feb 28, 2008 | 11.91 | = | 13.22 | ÷ | 1.11 | 1.11 | = | 730 | ÷ | 657,664,524 | |
| Feb 28, 2007 | 12.14 | = | 13.24 | ÷ | 1.09 | 1.09 | = | 744 | ÷ | 682,355,912 | |
| Mar 15, 2006 | 10.19 | = | 10.61 | ÷ | 1.04 | 1.04 | = | 745 | ÷ | 715,717,600 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Fiserv Inc. Annual Report.
The Price to operating profit (P/OP) ratio exhibits three distinct phases over the analyzed period: initial volatility during the global financial crisis, a decade of steady valuation expansion, and a period of extreme divergence between market price and operational performance.
- Valuation Trends 2006–2009
- The P/OP ratio remained relatively stable between 10.19 and 12.14 from 2006 to 2008. A significant contraction occurred in 2009, where the ratio fell to 5.72. This decline was driven by a sharp reduction in share price to 8.16 USD, which occurred despite a corresponding increase in operating profit per share to 1.43 USD.
- Steady Expansion 2010–2019
- A consistent upward trajectory in the P/OP ratio is observed from 2010 through 2019, rising from 7.77 to 18.93. During this window, share price growth outpaced the growth of operating profit per share. While operating profit grew steadily from 1.55 USD to 4.48 USD, the share price experienced a more aggressive climb from 12.06 USD to 84.75 USD, indicating an increasing market premium paid per unit of operating profit.
- Divergence and Correction 2020–2022
- The period between 2020 and 2022 is characterized by extreme valuation spikes. In 2020, the P/OP ratio surged to 45.81, the highest in the sequence. This anomaly resulted from a substantial decline in operating profit per share—which dropped from 4.48 USD in 2019 to 2.37 USD in 2020—while the share price continued to rise to 108.54 USD. A partial normalization occurred by 2022, with the P/OP ratio receding to 27.24 as the share price declined to 95.56 USD and operating profit recovered to 3.51 USD.
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Comparison to Competitors
Fiserv Inc., P/OP, long-term trends, comparison to competitors
| Fiserv Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2022 | 27.24 | 28.35 | 40.64 | 111.61 | 48.13 | — | 62.00 | 30.79 | 14.31 | — | — | 431.39 | 436.46 | 75.64 | — |
| Feb 26, 2021 | 41.70 | 22.21 | 51.75 | — | 57.54 | — | 41.56 | 29.30 | 12.17 | — | — | 511.08 | 583.08 | 59.90 | — |
| Feb 27, 2020 | 45.81 | 18.63 | 51.63 | — | 40.67 | — | 40.45 | 24.54 | 13.83 | — | — | 223.46 | 1,590.34 | 40.48 | — |
| Feb 21, 2019 | 18.93 | 16.75 | 42.06 | — | 40.66 | — | 37.92 | 23.63 | 12.83 | — | — | 395.31 | — | 35.54 | — |
| Feb 22, 2018 | 19.17 | 19.47 | 44.86 | — | 35.08 | — | 25.94 | 24.93 | 16.52 | — | — | 908.77 | — | 37.64 | — |
| Feb 23, 2017 | 17.06 | 15.44 | 36.62 | — | 33.61 | — | 23.33 | 21.70 | 13.09 | — | — | 411.51 | — | 28.34 | — |
| Feb 19, 2016 | 16.44 | 15.66 | 49.21 | — | 22.23 | — | 31.60 | 20.57 | 12.84 | — | — | — | — | 25.82 | — |
| Feb 20, 2015 | 15.60 | 11.94 | 86.32 | — | 26.17 | — | 18.25 | 12.81 | 12.12 | — | — | — | — | 26.04 | — |
| Feb 20, 2014 | 13.71 | 11.50 | 71.49 | — | 22.85 | — | 15.12 | 9.91 | 9.51 | — | — | — | — | 24.81 | — |
| Feb 22, 2013 | 10.14 | 11.84 | 16.04 | — | 18.94 | — | 15.05 | 11.23 | 9.91 | — | 1,147.44 | — | — | 25.46 | — |
| Feb 24, 2012 | 9.31 | 11.55 | 14.01 | — | 26.88 | — | 14.19 | 8.55 | 13.61 | — | — | 166.46 | — | 18.21 | — |
| Feb 24, 2011 | 9.00 | 10.76 | 17.20 | — | — | — | 16.51 | 9.27 | 11.95 | — | — | 83.25 | — | 22.01 | — |
| Feb 26, 2010 | 7.77 | 10.49 | 26.10 | — | — | — | 13.11 | 10.42 | 12.94 | — | — | 59.54 | — | 15.18 | — |
| Feb 27, 2009 | 5.72 | 7.72 | 10.04 | — | — | — | 15.15 | 10.44 | 13.68 | — | — | 350.81 | — | 11.75 | — |
| Feb 28, 2008 | 11.91 | 12.16 | 22.98 | — | 9.72 | — | 15.13 | 56.63 | 16.87 | — | — | — | — | 32.49 | — |
| Feb 28, 2007 | 12.14 | 14.25 | 41.03 | — | 26.13 | — | 20.38 | 48.35 | 16.72 | — | — | 214.74 | — | 131.87 | — |
| Mar 15, 2006 | 10.19 | 10.72 | 31.95 | — | 43.13 | — | 15.31 | 59.14 | 17.01 | — | — | 233.65 | — | — | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).