Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Fiserv, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -5.1% to 4.9% 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 68, DPO 65, DIO 60). At a 8.1% WACC with mid-year discounting, the terminal value (82% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.7x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $68.48 per share, suggesting FISV is undervalued by 22.6% at the current price of $55.86.
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 | 3,582 | 3,730 | 3,875 | 4,078 | 4,276 | 4,383 |
| (−) Net Interest | 1,080 | 1,125 | 1,169 | 1,230 | 1,289 | 1,322 |
| (+) D&A | 1,472 | 1,552 | 1,580 | 1,640 | 1,681 | 1,723 |
| EBITDA | 6,134 | 6,406 | 6,624 | 6,948 | 7,247 | 7,428 |
| (−) Tax | 668 | 695 | 722 | 760 | 797 | — |
| (−) CapEx | 1,559 | 1,623 | 1,686 | 1,775 | 1,861 | — |
| (−) ΔWC | 4,955 | 150 | 147 | 205 | 201 | — |
| Free Cash Flow (FCF) | -1,047 | 3,938 | 4,069 | 4,208 | 4,388 | — |
| Peers' EBITDA Multiple | 10.7x | |||||
| Terminal Value | 79,405 | |||||
| WACC / Discount Rate | 8.14% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | -1,007 | 3,502 | 3,345 | 3,200 | 3,086 | 53,688 |
| Enterprise Value | 65,814 | |||||
| Projection Period | 12,126 | 18.4% | ||||
| Terminal Value | 53,688 | 81.6% | ||||
| (−) Current Net Debt | 28,199 | |||||
| Equity Value | 37,615 | |||||
| (÷) Outstanding Shares | 549M | |||||
| Fair Price | $69 | +22.7% | ||||
| WACC \ EV/EBITDA Exit Multiple | 6.7x | 8.7x | 10.7x | 12.7x | 14.7x |
|---|---|---|---|---|---|
| 6.1% | $39 | $59 | $79 | $99 | $120 |
| 7.1% | $35 | $55 | $74 | $93 | $112 |
| 8.1% | $32 | $50 | $68 | $87 | $105 |
| 9.1% | $29 | $46 | $63 | $81 | $98 |
| 10.1% | $25 | $42 | $59 | $75 | $92 |
Current price: $55.86. 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.