Intrinsic value of Fidelity National Information Services - FIS

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$85.28

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$85.28

 
Intrinsic value

$63.12

 
Up/down potential

-26%

 
Rating

sell

 
Value-price divergence* premium content

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Our model is not good at valuating stocks of financial companies, such as FIS.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of FIS stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 28.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  40.12
  3.40
  3.56
  3.70
  3.83
  3.95
  4.06
  4.15
  4.23
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.63
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.82
  4.84
  4.86
  4.87
  4.89
  4.90
  4.91
  4.92
  4.92
Revenue, $m
  9,241
  9,555
  9,895
  10,262
  10,655
  11,076
  11,525
  12,004
  12,512
  13,051
  13,623
  14,228
  14,868
  15,544
  16,258
  17,012
  17,806
  18,644
  19,526
  20,456
  21,434
  22,464
  23,548
  24,689
  25,888
  27,149
  28,476
  29,870
  31,336
  32,876
  34,495
Variable operating expenses, $m
 
  7,911
  8,142
  8,392
  8,659
  8,945
  9,250
  9,575
  9,921
  10,287
  10,676
  9,669
  10,104
  10,564
  11,049
  11,561
  12,101
  12,670
  13,270
  13,901
  14,566
  15,266
  16,003
  16,778
  17,593
  18,450
  19,351
  20,299
  21,295
  22,342
  23,442
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  7,943
  7,911
  8,142
  8,392
  8,659
  8,945
  9,250
  9,575
  9,921
  10,287
  10,676
  9,669
  10,104
  10,564
  11,049
  11,561
  12,101
  12,670
  13,270
  13,901
  14,566
  15,266
  16,003
  16,778
  17,593
  18,450
  19,351
  20,299
  21,295
  22,342
  23,442
Operating income, $m
  1,298
  1,644
  1,753
  1,870
  1,996
  2,131
  2,275
  2,428
  2,591
  2,764
  2,947
  4,559
  4,764
  4,981
  5,210
  5,451
  5,706
  5,974
  6,257
  6,555
  6,868
  7,198
  7,545
  7,911
  8,295
  8,699
  9,124
  9,571
  10,041
  10,534
  11,053
EBITDA, $m
  2,472
  3,462
  3,585
  3,718
  3,861
  4,013
  4,176
  4,349
  4,533
  4,729
  4,936
  5,155
  5,387
  5,632
  5,891
  6,164
  6,452
  6,755
  7,075
  7,412
  7,766
  8,139
  8,532
  8,945
  9,380
  9,837
  10,317
  10,823
  11,354
  11,912
  12,499
Interest expense (income), $m
  351
  355
  375
  395
  417
  441
  467
  494
  523
  554
  586
  621
  657
  696
  737
  780
  826
  874
  924
  978
  1,034
  1,093
  1,156
  1,221
  1,290
  1,363
  1,439
  1,519
  1,604
  1,692
  1,785
Earnings before tax, $m
  906
  1,289
  1,378
  1,475
  1,579
  1,690
  1,809
  1,935
  2,069
  2,211
  2,361
  3,938
  4,107
  4,285
  4,473
  4,671
  4,880
  5,100
  5,332
  5,577
  5,834
  6,105
  6,390
  6,690
  7,005
  7,337
  7,685
  8,052
  8,437
  8,842
  9,268
Tax expense, $m
  317
  348
  372
  398
  426
  456
  488
  522
  559
  597
  638
  1,063
  1,109
  1,157
  1,208
  1,261
  1,318
  1,377
  1,440
  1,506
  1,575
  1,648
  1,725
  1,806
  1,891
  1,981
  2,075
  2,174
  2,278
  2,387
  2,502
Net income, $m
  568
  941
  1,006
  1,077
  1,153
  1,234
  1,320
  1,412
  1,510
  1,614
  1,724
  2,875
  2,998
  3,128
  3,265
  3,410
  3,562
  3,723
  3,893
  4,071
  4,259
  4,457
  4,665
  4,883
  5,114
  5,356
  5,610
  5,878
  6,159
  6,455
  6,765

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,203
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  26,031
  25,686
  26,600
  27,586
  28,643
  29,775
  30,982
  32,268
  33,634
  35,084
  36,621
  38,248
  39,968
  41,786
  43,705
  45,731
  47,866
  50,118
  52,490
  54,988
  57,619
  60,388
  63,302
  66,367
  69,591
  72,982
  76,547
  80,295
  84,235
  88,377
  92,729
Adjusted assets (=assets-cash), $m
  24,828
  25,686
  26,600
  27,586
  28,643
  29,775
  30,982
  32,268
  33,634
  35,084
  36,621
  38,248
  39,968
  41,786
  43,705
  45,731
  47,866
  50,118
  52,490
  54,988
  57,619
  60,388
  63,302
  66,367
  69,591
  72,982
  76,547
  80,295
  84,235
  88,377
  92,729
Revenue / Adjusted assets
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
  0.372
Average production assets, $m
  7,126
  7,367
  7,629
  7,912
  8,215
  8,540
  8,886
  9,255
  9,647
  10,063
  10,503
  10,970
  11,463
  11,985
  12,535
  13,116
  13,729
  14,374
  15,055
  15,771
  16,526
  17,320
  18,156
  19,035
  19,960
  20,932
  21,955
  23,030
  24,160
  25,348
  26,596
Working capital, $m
  1,131
  268
  277
  287
  298
  310
  323
  336
  350
  365
  381
  398
  416
  435
  455
  476
  499
  522
  547
  573
  600
  629
  659
  691
  725
  760
  797
  836
  877
  921
  966
Total debt, $m
  10,478
  10,704
  11,292
  11,926
  12,606
  13,333
  14,110
  14,936
  15,815
  16,747
  17,735
  18,781
  19,888
  21,056
  22,291
  23,593
  24,966
  26,414
  27,939
  29,546
  31,237
  33,017
  34,891
  36,862
  38,935
  41,115
  43,408
  45,818
  48,351
  51,014
  53,813
Total liabilities, $m
  16,290
  16,516
  17,104
  17,738
  18,418
  19,145
  19,922
  20,748
  21,627
  22,559
  23,547
  24,593
  25,700
  26,868
  28,103
  29,405
  30,778
  32,226
  33,751
  35,358
  37,049
  38,829
  40,703
  42,674
  44,747
  46,927
  49,220
  51,630
  54,163
  56,826
  59,625
Total equity, $m
  9,741
  9,170
  9,496
  9,848
  10,226
  10,630
  11,061
  11,520
  12,007
  12,525
  13,074
  13,654
  14,269
  14,918
  15,603
  16,326
  17,088
  17,892
  18,739
  19,631
  20,570
  21,558
  22,599
  23,693
  24,844
  26,055
  27,327
  28,665
  30,072
  31,550
  33,104
Total liabilities and equity, $m
  26,031
  25,686
  26,600
  27,586
  28,644
  29,775
  30,983
  32,268
  33,634
  35,084
  36,621
  38,247
  39,969
  41,786
  43,706
  45,731
  47,866
  50,118
  52,490
  54,989
  57,619
  60,387
  63,302
  66,367
  69,591
  72,982
  76,547
  80,295
  84,235
  88,376
  92,729
Debt-to-equity ratio
  1.076
  1.170
  1.190
  1.210
  1.230
  1.250
  1.280
  1.300
  1.320
  1.340
  1.360
  1.380
  1.390
  1.410
  1.430
  1.450
  1.460
  1.480
  1.490
  1.510
  1.520
  1.530
  1.540
  1.560
  1.570
  1.580
  1.590
  1.600
  1.610
  1.620
  1.630
Adjusted equity ratio
  0.344
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  568
  941
  1,006
  1,077
  1,153
  1,234
  1,320
  1,412
  1,510
  1,614
  1,724
  2,875
  2,998
  3,128
  3,265
  3,410
  3,562
  3,723
  3,893
  4,071
  4,259
  4,457
  4,665
  4,883
  5,114
  5,356
  5,610
  5,878
  6,159
  6,455
  6,765
Depreciation, amort., depletion, $m
  1,174
  1,818
  1,832
  1,848
  1,864
  1,882
  1,901
  1,921
  1,942
  1,965
  1,989
  596
  623
  651
  681
  713
  746
  781
  818
  857
  898
  941
  987
  1,035
  1,085
  1,138
  1,193
  1,252
  1,313
  1,378
  1,445
Funds from operations, $m
  2,126
  2,759
  2,839
  2,925
  3,017
  3,116
  3,221
  3,333
  3,452
  3,578
  3,712
  3,471
  3,621
  3,779
  3,946
  4,123
  4,308
  4,504
  4,711
  4,928
  5,157
  5,398
  5,651
  5,918
  6,198
  6,493
  6,803
  7,129
  7,472
  7,832
  8,211
Change in working capital, $m
  201
  9
  10
  10
  11
  12
  13
  13
  14
  15
  16
  17
  18
  19
  20
  21
  22
  23
  25
  26
  27
  29
  30
  32
  34
  35
  37
  39
  41
  43
  45
Cash from operations, $m
  1,925
  2,522
  2,829
  2,914
  3,006
  3,104
  3,208
  3,320
  3,438
  3,563
  3,696
  3,454
  3,603
  3,760
  3,926
  4,101
  4,286
  4,481
  4,686
  4,902
  5,130
  5,369
  5,621
  5,886
  6,165
  6,458
  6,766
  7,090
  7,431
  7,789
  8,165
Maintenance CAPEX, $m
  0
  -387
  -400
  -415
  -430
  -446
  -464
  -483
  -503
  -524
  -547
  -571
  -596
  -623
  -651
  -681
  -713
  -746
  -781
  -818
  -857
  -898
  -941
  -987
  -1,035
  -1,085
  -1,138
  -1,193
  -1,252
  -1,313
  -1,378
New CAPEX, $m
  -616
  -241
  -262
  -283
  -303
  -325
  -346
  -369
  -392
  -416
  -441
  -467
  -493
  -521
  -550
  -581
  -613
  -646
  -680
  -717
  -754
  -794
  -836
  -879
  -925
  -973
  -1,023
  -1,075
  -1,130
  -1,188
  -1,248
Cash from investing activities, $m
  -619
  -628
  -662
  -698
  -733
  -771
  -810
  -852
  -895
  -940
  -988
  -1,038
  -1,089
  -1,144
  -1,201
  -1,262
  -1,326
  -1,392
  -1,461
  -1,535
  -1,611
  -1,692
  -1,777
  -1,866
  -1,960
  -2,058
  -2,161
  -2,268
  -2,382
  -2,501
  -2,626
Free cash flow, $m
  1,306
  1,894
  2,166
  2,217
  2,273
  2,333
  2,398
  2,468
  2,543
  2,623
  2,709
  2,417
  2,513
  2,616
  2,724
  2,839
  2,961
  3,089
  3,224
  3,367
  3,518
  3,677
  3,844
  4,020
  4,206
  4,401
  4,606
  4,822
  5,049
  5,288
  5,540
Issuance/(repayment) of debt, $m
  -1,004
  558
  588
  634
  680
  728
  776
  827
  879
  932
  988
  1,046
  1,106
  1,169
  1,234
  1,302
  1,373
  1,448
  1,525
  1,607
  1,691
  1,780
  1,873
  1,971
  2,073
  2,180
  2,292
  2,410
  2,533
  2,663
  2,798
Issuance/(repurchase) of shares, $m
  72
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -968
  558
  588
  634
  680
  728
  776
  827
  879
  932
  988
  1,046
  1,106
  1,169
  1,234
  1,302
  1,373
  1,448
  1,525
  1,607
  1,691
  1,780
  1,873
  1,971
  2,073
  2,180
  2,292
  2,410
  2,533
  2,663
  2,798
Total cash flow (excl. dividends), $m
  342
  2,452
  2,754
  2,851
  2,953
  3,060
  3,174
  3,295
  3,422
  3,556
  3,697
  3,463
  3,620
  3,785
  3,959
  4,142
  4,334
  4,537
  4,750
  4,974
  5,209
  5,457
  5,717
  5,991
  6,279
  6,581
  6,899
  7,232
  7,583
  7,951
  8,338
Retained Cash Flow (-), $m
  -420
  -300
  -326
  -352
  -378
  -404
  -431
  -459
  -488
  -518
  -549
  -581
  -614
  -649
  -685
  -723
  -763
  -804
  -847
  -892
  -939
  -988
  -1,040
  -1,094
  -1,151
  -1,210
  -1,273
  -1,338
  -1,407
  -1,478
  -1,554
Prev. year cash balance distribution, $m
 
  871
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  3,023
  2,428
  2,499
  2,575
  2,657
  2,743
  2,836
  2,934
  3,038
  3,148
  2,882
  3,005
  3,136
  3,273
  3,419
  3,572
  3,733
  3,903
  4,082
  4,270
  4,469
  4,677
  4,897
  5,128
  5,370
  5,626
  5,894
  6,176
  6,473
  6,784
Discount rate, %
 
  7.80
  8.19
  8.60
  9.03
  9.48
  9.95
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.41
  27.73
  29.12
  30.58
  32.11
PV of cash for distribution, $m
 
  2,804
  2,074
  1,951
  1,822
  1,689
  1,552
  1,414
  1,275
  1,138
  1,005
  773
  669
  570
  479
  397
  323
  258
  202
  155
  117
  86
  62
  43
  30
  20
  13
  8
  5
  3
  2
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Fidelity National Information Services, Inc., a financial services technology company, offers a range of solutions in retail and institutional banking, payments, asset and wealth management, and risk and compliance in the United States. The company operates through Integrated Financial Solutions and Global Financial Solutions segments. It also provides financial consulting and outsourcing services. The Integrated Financial Solutions segment offers various solutions, including core processing and ancillary applications; digital solutions, such as Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail solutions; corporate liquidity; wealth management; item processing and output services; government payments solutions; and e-payment solutions. The Global Financial Solutions segment provides banking and payments solutions, and consulting and transformation services to financial institutions worldwide, which include securities processing and finance, global trading, asset management and insurance, retail banking and payments services, strategic consulting services, public sector and education, global commercial services, and retail check processing. The company offers consulting and technology services under the Capco brand. Fidelity National Information Services, Inc. was founded in 1968 and is headquartered in Jacksonville, Florida.

FINANCIAL RATIOS  of  Fidelity National Information Services (FIS)

Valuation Ratios
P/E Ratio 49.2
Price to Sales 3
Price to Book 2.9
Price to Tangible Book
Price to Cash Flow 14.5
Price to Free Cash Flow 21.4
Growth Rates
Sales Growth Rate 40.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 48.4%
Cap. Spend. - 3 Yr. Gr. Rate 12.9%
Financial Strength
Quick Ratio 4
Current Ratio 0.3
LT Debt to Equity 104.2%
Total Debt to Equity 107.6%
Interest Coverage 4
Management Effectiveness
Return On Assets 3%
Ret/ On Assets - 3 Yr. Avg. 4.1%
Return On Total Capital 2.8%
Ret/ On T. Cap. - 3 Yr. Avg. 4.2%
Return On Equity 6%
Return On Equity - 3 Yr. Avg. 8.1%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 32.6%
Gross Margin - 3 Yr. Avg. 32.8%
EBITDA Margin 26.3%
EBITDA Margin - 3 Yr. Avg. 27.7%
Operating Margin 14%
Oper. Margin - 3 Yr. Avg. 16.8%
Pre-Tax Margin 9.8%
Pre-Tax Margin - 3 Yr. Avg. 14%
Net Profit Margin 6.1%
Net Profit Margin - 3 Yr. Avg. 8.8%
Effective Tax Rate 35%
Eff/ Tax Rate - 3 Yr. Avg. 34.5%
Payout Ratio 60%

FIS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FIS stock intrinsic value calculation we used $9241 million for the last fiscal year's total revenue generated by Fidelity National Information Services. The default revenue input number comes from 2016 income statement of Fidelity National Information Services. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our FIS stock valuation model: a) initial revenue growth rate of 3.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.8%, whose default value for FIS is calculated based on our internal credit rating of Fidelity National Information Services, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Fidelity National Information Services.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of FIS stock the variable cost ratio is equal to 83.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for FIS stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Fidelity National Information Services.

Corporate tax rate of 27% is the nominal tax rate for Fidelity National Information Services. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the FIS stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for FIS are equal to 77.1%.

Life of production assets of 18.4 years is the average useful life of capital assets used in Fidelity National Information Services operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for FIS is equal to 2.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $9741 million for Fidelity National Information Services - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 331.771 million for Fidelity National Information Services is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Fidelity National Information Services at the current share price and the inputted number of shares is $28.3 billion.


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COMPANY NEWS

▶ [$$] CD&R Buying Majority Stake in Management Consultancy From FIS   [May-23-17 12:33PM  The Wall Street Journal]
▶ Fidelity National beats 1Q profit forecasts   [07:11AM  Associated Press]
▶ FIS Reports First Quarter 2017 Results   [07:00AM  Business Wire]
▶ FIS Announces Quarterly Dividend   [Apr-27-17 05:15PM  Business Wire]
▶ FIS to Report First Quarter Financial Results on May 2   [Apr-04-17 08:30AM  Business Wire]
▶ Online brokerage battle heats up   [Feb-28-17 01:32PM  CNBC Videos]
▶ Could FIS Be a Great Value Buy in 2017?   [Feb-13-17 07:36AM  Market Realist]
▶ FIS Increases Quarterly Dividend 12% to $0.29 per Share   [Jan-25-17 05:12PM  Business Wire]
▶ 4 Stocks Expected to Hike Dividends Next Week   [Jan-20-17 05:38PM  at Barrons.com]
▶ 10 Great All-Weather Stocks   [08:01AM  at Kiplinger]
▶ [$$] PayPal Taps Citigroup For New Mobile Push   [12:28AM  at The Wall Street Journal]
▶ [$$] PayPal Taps Citigroup For New Mobile Push   [12:22PM  at The Wall Street Journal]
▶ Here Is What Hedge Funds Think About Fiserv Inc. (FISV)   [Dec-14-16 02:38PM  at Insider Monkey]
▶ Servus Credit Union Expands Payment Capabilities with FIS   [Dec-13-16 08:00AM  Business Wire]
Stock chart of FIS Financial statements of FIS Annual reports of FIS
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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