Fidelity National Information Services, Inc. (FIS) Stock Valuation — DCF Analysis
Information Technology Services · NYSE
Current Price
$39.20
Intrinsic Value
$61.7
+36.5% margin of safety
COMPETITIVE MOAT
↑Lending Tech Modernization Partnership
FIS partners with Fuse to update outdated lending technology. This aims to speed up loan approvals and increase loan volume for lenders.
↑AI-Driven Banking Services
FIS secures a core banking deal with BankSouth to advance AI-driven services. This accelerates fintech integrations and modernizes digital payments.
↑Payment Flow Expertise
FIS emphasizes the risk for banks not controlling payment flows. This highlights their strategic importance in retaining customer relationships.
INVESTMENT RISKS
↓Macroeconomic Pressures
Broader economic challenges may impact FIS's performance. These external factors can create headwinds for the company.
↓Weak Lending Markets
The current lending environment presents difficulties. This can affect the demand for FIS's lending-related services.
↓Heavy Debt Load
FIS carries a significant amount of debt. This financial burden could limit flexibility and increase financial risk.
Base case
FIS base case valuation
A base case discounted cash flow model for FIS estimates an intrinsic value of about $61.7 per share, against a current price of $39.2. The model assumes 8.8% annual free cash flow growth, a 10.0% discount rate, and a 7x exit multiple.
Intrinsic Value
$61.7
Margin of safety
+36.5%
Expected annual return
+9.5%
Base case assumptions: 8.8% annual growth, 10.0% discount rate, 7x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the FIS valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Fidelity National Information Services, Inc. respond.
Open DCF Calculator for FISCompany Overview
Fidelity National Information Services, Inc. (FIS) delivers technology services and solutions to a global clientele, encompassing merchants, banks, and capital markets firms. The company's operations are structured into three primary divisions: Merchant Solutions, Banking Solutions, and Capital Market Solutions. The Merchant Solutions segment specializes in enterprise-level acquiring services, software-driven acquiring for small and medium-sized businesses, and comprehensive global e-commerce offerings. Within Banking Solutions, FIS provides a wide spectrum of services, including core processing systems and ancillary applications; digital platforms for internet, mobile, and electronic banking; robust solutions for fraud prevention, risk management, and regulatory compliance; electronic funds transfer (EFT) and network services; diverse card and retail payment options; wealth and retirement planning tools; and essential item processing and output services. The Capital Market Solutions segment furnishes solutions for securities processing and financial operations, global trading activities, asset management and insurance services, and corporate liquidity management. Established in 1968, Fidelity National Information Services, Inc. maintains its headquarters in Jacksonville, Florida.
Financial Metrics — FIS Stock Valuation Data
Revenue/Share (TTM)
$22.64
FCF/Share (TTM)
$5.40
ROIC (TTM)
4.8%
ROE (TTM)
18.5%
P/FCF
7.3x
EV/EBITDA
4.1x
FCF Yield
13.73%
Debt/Equity
0.27x
Based on trailing twelve-month data, FIS shows a free cash flow per share of $5.40 and a ROIC of 4.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 7.3x and FCF yield of 13.73% are important context metrics when evaluating FIS's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of FIS?
Fidelity National Information Services, Inc. currently generates $5.40 in free cash flow per share. At the current price of $39.20, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is FIS undervalued?
FIS trades at a P/FCF ratio of 7.3x with a free cash flow yield of 13.73%. This relatively low P/FCF may suggest the stock is attractively priced relative to its cash generation. However, whether FIS is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value FIS stock using DCF?
To perform a DCF valuation on Fidelity National Information Services, Inc.: (1) Start with the trailing free cash flow per share ($5.40) as the base, (2) project future FCF growth over 5-10 years based on Information Technology Services industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting FIS's risk profile — with a debt-to-equity of 0.27x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to FIS?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Fidelity National Information Services, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Information Technology Services trends, then discounting those amounts to today's dollars. FIS's ROIC of 4.8% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect FIS stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For FIS, with a debt-to-equity ratio of 0.27x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 4.1x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See FIS PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Technology valuationsDCF and P/E value FIS with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.