Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Fidelity National Information Services, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 25.6% to -6.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 94, DPO 33, DIO 60). At a 9.0% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 12.9x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $49.07 per share, suggesting FIS is fairly valued by 3.5% at the current price of $47.42.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 1,834 | 1,972 | 2,045 | 2,019 | 1,891 | 1,938 |
| (−) Net Interest | 504 | 542 | 562 | 555 | 519 | 532 |
| (+) D&A | 377 | 209 | 244 | 313 | 384 | 394 |
| EBITDA | 2,715 | 2,722 | 2,851 | 2,886 | 2,794 | 2,864 |
| (−) Tax | 650 | 698 | 725 | 715 | 670 | — |
| (−) CapEx | 412 | 442 | 459 | 453 | 424 | — |
| (−) ΔWC | 1,704 | 306 | 164 | -59 | -285 | — |
| Free Cash Flow (FCF) | -50 | 1,276 | 1,504 | 1,777 | 1,985 | — |
| Peers' EBITDA Multiple | 12.9x | |||||
| Terminal Value | 36,920 | |||||
| WACC / Discount Rate | 9.04% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | -48 | 1,120 | 1,211 | 1,313 | 1,345 | 23,949 |
| Enterprise Value | 28,889 | |||||
| Projection Period | 4,941 | 17.1% | ||||
| Terminal Value | 23,949 | 82.9% | ||||
| (−) Current Net Debt | 3,414 | |||||
| Equity Value | 25,475 | |||||
| (÷) Outstanding Shares | 519M | |||||
| Fair Price | $49 | +3.5% | ||||
| WACC \ EV/EBITDA Exit Multiple | 8.9x | 10.9x | 12.9x | 14.9x | 16.9x |
|---|---|---|---|---|---|
| 7.0% | $38 | $46 | $54 | $62 | $70 |
| 8.0% | $37 | $44 | $52 | $59 | $67 |
| 9.0% | $35 | $42 | $49 | $56 | $63 |
| 10.0% | $33 | $40 | $47 | $54 | $60 |
| 11.0% | $31 | $38 | $45 | $51 | $58 |
Current price: $47.42. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.