if you look at fiserv right now, the market selloff after their q1 2026 results has made a wild mispricing. stock is trading around 52 dollars, giving it a market cap around 27.9 billion. if you check their 2025 10-k and the q1 2026 10-q, the real numbers are way stronger than the market thinks.
lets do the math. in 2025 full year, fiserv made 21.19 billion in gaap revenue and 3.48 billion in net income, with eps coming in at 6.34 dollars. for q1 2026, revenue was 5.027 billion and net income was 571 million. they hold 829 million in cash against 27.86 billion in long term debt. that means net debt is about 27.03 billion. if you add net debt to the market cap, you get an enterprise value of roughly 54.9 billion.
their trailing 2025 ebitda was around 8.6 billion, which puts the current ev to ebitda ratio at just under 6.4x. on a p/e ratio basis, the stock is sitting at an absurdly low 8.8x relative to trailing earnings. management also kept 2026 guidance at 8.00 to 8.30 adjusted eps.
running a simple dcf model using their 2025 free cash flow of 4.3 billion, a discount rate of 9 percent and a 2 percent growth rate gives a fair intrinsic value well over 160 dollars per share.
if the p/e multiple moves back toward normal levels, it will perform at least 220% profit if invested now at these prices. the stock could theoretically drop more in the short term due to sector panic, but it would be temporary because the high cash flow and debt payoff will fix the price over time.