InvestorsObserver
×
News Home

Should You Buy Fiserv Inc (FISV) Stock Tuesday?

Tuesday, November 24, 2020 10:04 AM | InvestorsObserver Analysts

Mentioned in this article

Should You Buy Fiserv Inc (FISV) Stock Tuesday?

Fiserv Inc (FISV) receives a strong valuation ranking of 80 from InvestorsObserver's data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. FISV has a better value than 80% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 80
FISV gets a 80 Valuation Rank today. Find out what this means to you and get the rest of the rankings on FISV!

Metrics Analysis

FISV has a trailing twelve month Price to Earnings (PE) ratio of 88.1. The historical average of roughly 15 shows a poor value for FISV stock as investors are paying higher share prices relative to the company's earnings. FISV's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 1.28 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.

FISV currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.57. The market is currently overvaluing FISV in relation to its projected growth due to the PEG ratio being above the fair market value of 1. FISV's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

FISV' has a weak valuation at its current share price on account of a overvalued PEG ratio despite strong growth. FISV's PE and PEG are worse than the market average leading to a below average valuation score.

Click Here to get the full Stock Score Report on Fiserv Inc (FISV) Stock.

You May Also Like

Get the InvestorsObserver App

InvestorsObserver App
iOS App Android App