Stock Analysis on Net

Fiserv Inc. (NASDAQ:FISV)

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Fiserv Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income attributable to Fiserv, Inc. 958  893  1,187  1,246  930 
Net income attributable to noncontrolling interests and redeemable noncontrolling interests 17  21  —  —  — 
Net noncash charges 3,383  1,845  534  252  468 
Changes in assets and liabilities, net of effects from acquisitions and dispositions (211) 36  (169) (15) 33 
Net cash provided by operating activities 4,147  2,795  1,552  1,483  1,431 
Capital expenditures, including capitalized software and other intangibles (900) (721) (360) (287) (290)
Debt proceeds 8,897  20,030  5,039  2,310  2,126 
Debt repayments (10,918) (5,043) (4,005) (1,985) (1,863)
Short-term borrowings, net (6) —  —  —  — 
Payments of debt financing, redemption and other costs (16) (247) —  —  — 
Free cash flow to equity (FCFE) 1,204  16,814  2,226  1,521  1,404 

Based on: 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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Fiserv Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Fiserv Inc. FCFE increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Price to FCFE Ratio, Current

Fiserv Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
No. shares of common stock outstanding 660,231,928
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 1,204 
FCFE per share 1.82
Current share price (P) 109.11
Valuation Ratio
P/FCFE 59.83
Benchmarks
P/FCFE, Competitors1
Accenture PLC 26.65
Adobe Inc. 46.72
Autodesk Inc. 63.95
Automatic Data Processing Inc. 26.95
Fidelity National Information Services Inc. 37.03
International Business Machines Corp. 10.52
Intuit Inc. 87.28
Mastercard Inc. 34.91
Microsoft Corp. 46.01
Oracle Corp. 8.99
PayPal Holdings Inc. 23.10
salesforce.com inc. 57.46
ServiceNow Inc. 45.68
Visa Inc. 39.29
P/FCFE, Sector
Software & Services 35.17
P/FCFE, Industry
Information Technology 34.78

Based on: 10-K (reporting date: 2020-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

Fiserv Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
No. shares of common stock outstanding1 669,459,877 679,098,783 391,586,971 413,215,728 429,127,900
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 1,204  16,814  2,226  1,521  1,404 
FCFE per share3 1.80 24.76 5.68 3.68 3.27
Share price1, 4 115.37 108.54 84.75 71.06 57.45
Valuation Ratio
P/FCFE5 64.15 4.38 14.91 19.31 17.56
Benchmarks
P/FCFE, Competitors6
Accenture PLC 19.01 19.50 18.11 20.24 18.22
Adobe Inc. 41.36 41.90 19.87 35.56 27.41
Autodesk Inc. 24.07 41.92 609.14 197.14 11.80
Automatic Data Processing Inc. 26.84 30.56 28.87 29.94 11.79
Fidelity National Information Services Inc. 42.96 9.51 22.12 97.57
International Business Machines Corp. 9.43 4.39 11.07 8.55 10.60
Intuit Inc. 17.36 34.61 29.29 42.22 21.01
Mastercard Inc. 32.34 35.41 33.72 35.79 19.46
Microsoft Corp. 42.74 30.77 37.57 8.86 10.12
Oracle Corp. 6.27 22.31 10.78 8.16 11.68
PayPal Holdings Inc. 34.78 20.59 18.96 33.80 20.00
salesforce.com inc. 50.40 29.09 52.51 25.44 50.00
ServiceNow Inc. 50.12 74.57 327.16 24.90 410.08
Visa Inc. 26.18 32.21 30.19 22.70 8.78
P/FCFE, Sector
Software & Services 27.60 20.80 25.05 13.57 12.33
P/FCFE, Industry
Information Technology 24.46 18.99 22.20 12.57 11.10

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2020 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,204,000,000 ÷ 669,459,877 = 1.80

4 Closing price as at the filing date of Fiserv Inc. Annual Report.

5 2020 Calculation
P/FCFE = Share price ÷ FCFE per share
= 115.37 ÷ 1.80 = 64.15

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Fiserv Inc. P/FCFE ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.