Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Fiserv Inc., current price multiples
| Fiserv Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | Software & Services | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Current share price (P) | $104.74 | ||||||||||||||||||||
| No. shares of common stock outstanding | 646,394,065 | ||||||||||||||||||||
| Growth rate (g) | 13.40% | ||||||||||||||||||||
| Earnings per share (EPS) | $2.06 | ||||||||||||||||||||
| Next year expected EPS | $2.34 | ||||||||||||||||||||
| Operating profit per share | $3.54 | ||||||||||||||||||||
| Sales per share | $25.10 | ||||||||||||||||||||
| Book value per share (BVPS) | $47.88 | ||||||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||||||
| Price to earnings (P/E) | 50.75 | 14.04 | 12.85 | 31.19 | 80.99 | 893.61 | 20.06 | 16.14 | 28.66 | 24.41 | 280.48 | 998.49 | 25.83 | 80.22 | 61.24 | 65.88 | 63.72 | 87.50 | |||
| Price to next year expected earnings | 44.75 | 12.05 | 9.36 | 21.21 | 64.29 | 880.43 | 22.46 | 14.45 | 22.77 | 9.09 | 277.42 | 850.90 | 24.35 | 70.56 | 52.77 | 63.48 | 50.81 | 66.88 | |||
| Price-earnings-growth (PEG) | 3.79 | 0.85 | 0.34 | 0.66 | 3.12 | 596.73 | — | 1.38 | 1.11 | 0.14 | 254.75 | 57.56 | 4.25 | 5.86 | 3.81 | 17.41 | 2.51 | 2.84 | |||
| Price to operating profit (P/OP) | 29.59 | 10.54 | 10.53 | 25.05 | 60.20 | — | 17.97 | 12.53 | 24.69 | 20.12 | 322.34 | 441.06 | 23.12 | 76.88 | 89.18 | 63.33 | 57.14 | 77.21 | |||
| Price to sales (P/S) | 4.17 | 1.55 | 3.86 | 18.97 | 16.96 | 28.09 | 3.15 | 3.44 | 11.55 | 6.15 | 101.84 | 26.70 | 4.64 | 10.56 | 11.57 | 4.78 | 16.01 | 20.53 | |||
| Price to book value (P/BV) | 2.19 | 3.46 | 7.88 | 48.72 | 16.41 | 25.80 | 6.51 | 3.88 | 8.66 | 9.75 | 61.70 | 11.15 | 3.26 | 10.82 | 2.88 | 5.85 | 22.88 | 36.39 | |||
Based on: 10-K (reporting date: 2021-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Fiserv Inc., historical price multiples
Based on: 10-K (reporting date: 2021-12-31), 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).
The valuation multiples for the period between 2017 and 2021 exhibit significant volatility, characterized by a sharp expansion in earnings-based multiples peaking in 2019 and 2020, followed by a notable contraction in 2021. A structural shift is also evident in the book value valuation starting in 2019.
- Price to Earnings (P/E) and Price to Operating Profit (P/OP)
- Both ratios followed a similar trajectory, remaining relatively stable from 2017 to 2018 before experiencing a substantial surge in 2019. The P/E ratio rose from 27.96 in 2018 to a peak of 82.54 in 2019, while the P/OP ratio increased from 18.93 to 45.81 in the same period. This suggests a period of significant price appreciation relative to earnings or a temporary compression of profitability. Both metrics declined in 2021, with the P/E ratio settling at 46.72 and the P/OP ratio at 27.24, though both remained higher than their 2017-2018 levels.
- Price to Sales (P/S)
- The P/S ratio peaked in 2019 at 7.24, coinciding with the peak in earnings multiples. However, unlike the P/E and P/OP ratios, the P/S ratio entered a consistent downward trend thereafter, falling to 5.20 in 2020 and reaching a period low of 3.84 by December 31, 2021. This indicates a reduction in the market premium attributed to each dollar of revenue generated by the company.
- Price to Book Value (P/BV)
- A dramatic divergence is observed in the P/BV ratio. After increasing from 10.75 in 2017 to 14.47 in 2018, the ratio collapsed to 2.24 in 2019. Following this sharp decline, the ratio remained relatively flat, ending the period at 2.01 in 2021. This precipitous drop suggests a fundamental change in the balance sheet structure, likely resulting from a significant increase in shareholders' equity or a major accounting adjustment during 2019.
Overall, the data indicates a transition from a high-premium valuation environment in 2019-2020 toward a more compressed valuation by the end of 2021, alongside a permanent shift in the relationship between market price and book value.
AI Ask an analyst for more
Price to Earnings (P/E)
Fiserv Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 652,196,905 | 669,459,877 | 679,098,783 | 391,586,971 | 413,215,728 | |
| Selected Financial Data (US$) | ||||||
| Net income attributable to Fiserv, Inc. (in millions) | 1,334) | 958) | 893) | 1,187) | 1,246) | |
| Earnings per share (EPS)2 | 2.05 | 1.43 | 1.31 | 3.03 | 3.02 | |
| Share price1, 3 | 95.56 | 115.37 | 108.54 | 84.75 | 71.06 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 46.72 | 80.62 | 82.54 | 27.96 | 23.57 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Accenture PLC | 36.58 | 28.32 | — | — | — | |
| Adobe Inc. | 48.90 | 41.69 | — | — | — | |
| AppLovin Corp. | 472.35 | — | — | — | — | |
| Cadence Design Systems Inc. | 53.88 | — | — | — | — | |
| Datadog Inc. | — | — | — | — | — | |
| International Business Machines Corp. | 19.40 | — | — | — | — | |
| Intuit Inc. | 75.17 | — | — | — | — | |
| Microsoft Corp. | 35.14 | — | — | — | — | |
| Oracle Corp. | 15.84 | — | — | — | — | |
| Palantir Technologies Inc. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | 48.20 | — | — | — | — | |
| ServiceNow Inc. | 487.70 | — | — | — | — | |
| Synopsys Inc. | 73.37 | 55.92 | — | — | — | |
| Workday Inc. | — | — | — | — | — | |
| P/E Ratio, Sector | ||||||
| Software & Services | 37.62 | — | — | — | — | |
| P/E Ratio, Industry | ||||||
| Information Technology | 29.70 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
EPS = Net income attributable to Fiserv, Inc. ÷ No. shares of common stock outstanding
= 1,334,000,000 ÷ 652,196,905 = 2.05
3 Closing price as at the filing date of Fiserv Inc. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 95.56 ÷ 2.05 = 46.72
5 Click competitor name to see calculations.
Analysis of valuation trends from 2017 to 2021 indicates a period of significant volatility in earnings and market valuation multiples. The relationship between share price and earnings per share suggests a decoupling of market sentiment from fundamental earnings during the middle of the period.
- Share Price Movement
- An upward trajectory was observed between 2017 and 2020, with the share price increasing from 71.06 to a peak of 115.37. This growth trend reversed in 2021, with the price decreasing to 95.56.
- Earnings per Share (EPS) Performance
- EPS remained relatively stable between 2017 and 2018 at approximately 3.02 to 3.03. A sharp contraction occurred in 2019, where EPS fell to 1.31. A gradual recovery followed in the subsequent two years, with values rising to 1.43 in 2020 and 2.05 in 2021.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio experienced a substantial surge in 2019, rising from 27.96 to 82.54, and remained elevated at 80.62 in 2020. This expansion was driven by the simultaneous increase in share price and the sharp decline in EPS. In 2021, the P/E ratio underwent a significant correction to 46.72, resulting from the recovery of earnings and a decline in the share price.
AI Ask an analyst for more
Price to Operating Profit (P/OP)
Fiserv Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 652,196,905 | 669,459,877 | 679,098,783 | 391,586,971 | 413,215,728 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 2,288) | 1,852) | 1,609) | 1,753) | 1,532) | |
| Operating profit per share2 | 3.51 | 2.77 | 2.37 | 4.48 | 3.71 | |
| Share price1, 3 | 95.56 | 115.37 | 108.54 | 84.75 | 71.06 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 27.24 | 41.70 | 45.81 | 18.93 | 19.17 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Accenture PLC | 28.35 | 22.21 | — | — | — | |
| Adobe Inc. | 40.64 | 51.75 | — | — | — | |
| AppLovin Corp. | 111.61 | — | — | — | — | |
| Cadence Design Systems Inc. | 48.13 | — | — | — | — | |
| Datadog Inc. | — | — | — | — | — | |
| International Business Machines Corp. | 16.23 | — | — | — | — | |
| Intuit Inc. | 62.00 | — | — | — | — | |
| Microsoft Corp. | 30.79 | — | — | — | — | |
| Oracle Corp. | 14.31 | — | — | — | — | |
| Palantir Technologies Inc. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | 431.39 | — | — | — | — | |
| ServiceNow Inc. | 436.46 | — | — | — | — | |
| Synopsys Inc. | 75.64 | 59.90 | — | — | — | |
| Workday Inc. | — | — | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Software & Services | 33.74 | — | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Information Technology | 26.21 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 2,288,000,000 ÷ 652,196,905 = 3.51
3 Closing price as at the filing date of Fiserv Inc. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 95.56 ÷ 3.51 = 27.24
5 Click competitor name to see calculations.
The valuation of common stock based on operating profit exhibits significant volatility between 2017 and 2021, characterized by a sharp expansion in the price multiple mid-period followed by a partial contraction.
- Share Price Movement
- A consistent upward trajectory is observed from 2017 to 2020, with the price increasing from 71.06 US$ to a peak of 115.37 US$. This growth trend reversed in 2021, as the price declined to 95.56 US$.
- Operating Profit per Share Trends
- Operating profit per share grew from 3.71 US$ in 2017 to 4.48 US$ in 2018, before experiencing a substantial decrease to 2.37 US$ in 2019. A gradual recovery followed, with profits rising to 2.77 US$ in 2020 and reaching 3.51 US$ by the end of 2021.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio remained stable near 19x during 2017 and 2018. A significant spike occurred in 2019, where the ratio reached 45.81, driven by the divergence of a rising share price and falling operating profits. Although the ratio decreased slightly to 41.70 in 2020, it remained elevated. By 2021, the ratio normalized to 27.24, resulting from a simultaneous correction in the share price and a recovery in operating profitability.
The data indicates that the valuation multiple peaked during a period of diminished operating efficiency, suggesting that market pricing in 2019 and 2020 was not aligned with immediate operating results, but rather anticipated future performance or responded to non-operating factors.
AI Ask an analyst for more
Price to Sales (P/S)
Fiserv Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 652,196,905 | 669,459,877 | 679,098,783 | 391,586,971 | 413,215,728 | |
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | 16,226) | 14,852) | 10,187) | 5,823) | 5,696) | |
| Sales per share2 | 24.88 | 22.19 | 15.00 | 14.87 | 13.78 | |
| Share price1, 3 | 95.56 | 115.37 | 108.54 | 84.75 | 71.06 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 3.84 | 5.20 | 7.24 | 5.70 | 5.16 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Accenture PLC | 4.28 | 3.26 | — | — | — | |
| Adobe Inc. | 14.94 | 17.04 | — | — | — | |
| AppLovin Corp. | 5.99 | — | — | — | — | |
| Cadence Design Systems Inc. | 12.55 | — | — | — | — | |
| Datadog Inc. | 49.25 | — | — | — | — | |
| International Business Machines Corp. | 1.94 | — | — | — | — | |
| Intuit Inc. | 16.09 | — | — | — | — | |
| Microsoft Corp. | 12.81 | — | — | — | — | |
| Oracle Corp. | 5.38 | — | — | — | — | |
| Palantir Technologies Inc. | 15.58 | — | — | — | — | |
| Palo Alto Networks Inc. | 10.72 | — | — | — | — | |
| Salesforce Inc. | 9.24 | — | — | — | — | |
| ServiceNow Inc. | 19.02 | — | — | — | — | |
| Synopsys Inc. | 13.22 | 10.08 | — | — | — | |
| Workday Inc. | 13.95 | — | — | — | — | |
| P/S Ratio, Sector | ||||||
| Software & Services | 9.45 | — | — | — | — | |
| P/S Ratio, Industry | ||||||
| Information Technology | 6.97 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 16,226,000,000 ÷ 652,196,905 = 24.88
3 Closing price as at the filing date of Fiserv Inc. Annual Report.
4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 95.56 ÷ 24.88 = 3.84
5 Click competitor name to see calculations.
The valuation of common stock based on price-to-sales multiples exhibits a period of expansion followed by a significant contraction between 2017 and 2021.
- Price to Sales (P/S) Ratio Trend
- The P/S ratio increased from 5.16 in 2017 to a peak of 7.24 in 2019, indicating an increase in the market premium attributed to each dollar of revenue. Following this peak, a downward trend is observed, with the ratio declining to 5.20 in 2020 and further decreasing to a period low of 3.84 by December 31, 2021.
- Sales per Share Growth
- A consistent upward trajectory is observed in sales per share, which grew from 13.78 USD in 2017 to 24.88 USD in 2021. A significant acceleration in revenue generation occurred between 2019 and 2020, where sales per share rose from 15.00 USD to 22.19 USD.
- Share Price Movement
- The share price experienced steady growth from 71.06 USD in 2017, reaching a maximum value of 115.37 USD in 2020. This was followed by a correction in 2021, with the price closing at 95.56 USD.
The compression of the P/S ratio from 2019 to 2021 is primarily driven by the fact that sales per share growth outpaced the growth in share price. While the share price increased by approximately 62% between 2017 and 2021, sales per share increased by approximately 80% over the same period. The sharpest decline in the valuation multiple occurred in 2021, coinciding with both a decrease in share price and a continued increase in sales per share.
AI Ask an analyst for more
Price to Book Value (P/BV)
Fiserv Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 652,196,905 | 669,459,877 | 679,098,783 | 391,586,971 | 413,215,728 | |
| Selected Financial Data (US$) | ||||||
| Total Fiserv, Inc. shareholders’ equity (in millions) | 30,952) | 32,330) | 32,979) | 2,293) | 2,731) | |
| Book value per share (BVPS)2 | 47.46 | 48.29 | 48.56 | 5.86 | 6.61 | |
| Share price1, 3 | 95.56 | 115.37 | 108.54 | 84.75 | 71.06 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 2.01 | 2.39 | 2.24 | 14.47 | 10.75 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Accenture PLC | 11.06 | 8.51 | — | — | — | |
| Adobe Inc. | 15.94 | 16.53 | — | — | — | |
| AppLovin Corp. | 7.83 | — | — | — | — | |
| Cadence Design Systems Inc. | 13.68 | — | — | — | — | |
| Datadog Inc. | 48.66 | — | — | — | — | |
| International Business Machines Corp. | 5.90 | — | — | — | — | |
| Intuit Inc. | 15.71 | — | — | — | — | |
| Microsoft Corp. | 15.16 | — | — | — | — | |
| Oracle Corp. | 41.57 | — | — | — | — | |
| Palantir Technologies Inc. | 10.48 | — | — | — | — | |
| Palo Alto Networks Inc. | 71.88 | — | — | — | — | |
| Salesforce Inc. | 4.73 | — | — | — | — | |
| ServiceNow Inc. | 30.36 | — | — | — | — | |
| Synopsys Inc. | 10.50 | 7.57 | — | — | — | |
| Workday Inc. | 18.38 | — | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Software & Services | 13.51 | — | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Information Technology | 12.35 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
BVPS = Total Fiserv, Inc. shareholders’ equity ÷ No. shares of common stock outstanding
= 30,952,000,000 ÷ 652,196,905 = 47.46
3 Closing price as at the filing date of Fiserv Inc. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 95.56 ÷ 47.46 = 2.01
5 Click competitor name to see calculations.
The analysis of valuation multiples reveals a significant structural shift in the price-to-book value (P/BV) ratio between 2018 and 2019. The ratio transitioned from a high-multiple valuation environment to a significantly compressed range, primarily driven by a substantial increase in the underlying book value of the equity.
- Share Price Trends
- An upward trajectory was observed from 2017 to 2020, with the price increasing from 71.06 US$ to a peak of 115.37 US$. A subsequent correction occurred in 2021, with the price declining to 95.56 US$.
- Book Value Per Share (BVPS) Dynamics
- BVPS remained low and relatively stagnant during 2017 and 2018, recording 6.61 US$ and 5.86 US$, respectively. A sharp increase occurred in 2019, where BVPS rose to 48.56 US$, and it remained relatively stable through 2021, ending at 47.46 US$.
- Price to Book Value (P/BV) Interpretation
- The P/BV ratio experienced a peak of 14.47 in 2018, reflecting a high market premium relative to the book value. Following the surge in BVPS in 2019, the ratio dropped precipitously to 2.24. For the remainder of the period, the ratio stabilized at lower levels, ending at 2.01 in 2021, which indicates a valuation more closely aligned with the company's net asset value compared to the 2017-2018 period.
AI Ask an analyst for more