An Intrinsic Calculation For Fidelity National Information Services, Inc. (NYSE:FIS) Suggests It's 47% Undervalued
Nov 26
U.S. IT Industry Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies219
- 7D1.3%
- 3M-2.2%
- 1Y-27.1%
- YTD-29.3%
Over the last 7 days, the IT industry has risen 1.3%, and Mastercard contributed the most with a gain of 2.2%. In the same time, PayPal Holdings was down 5.7%. In contrast, the industry has lost 27% in the last 12 months. As for the next few years, earnings are expected to grow by 21% per annum.
Industry Valuation and Performance
Has the U.S. IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | US$2.0t | US$456.3b | US$39.0b | 28.6x | 50x | 4.3x |
| Wed, 26 Oct 2022 | US$1.9t | US$450.4b | US$37.4b | 28.4x | 50.5x | 4.2x |
| Fri, 23 Sep 2022 | US$1.8t | US$447.0b | US$41.4b | 26.1x | 44.1x | 4.1x |
| Sun, 21 Aug 2022 | US$2.1t | US$445.9b | US$41.6b | 29.8x | 50.8x | 4.7x |
| Tue, 19 Jul 2022 | US$1.9t | US$441.6b | US$46.9b | 28.6x | 41.5x | 4.4x |
| Thu, 16 Jun 2022 | US$1.9t | US$439.3b | US$46.9b | 27.1x | 40.6x | 4.3x |
| Sat, 14 May 2022 | US$2.0t | US$438.7b | US$46.3b | 26.3x | 43.1x | 4.6x |
| Mon, 11 Apr 2022 | US$2.3t | US$431.0b | US$47.2b | 33.6x | 49.1x | 5.4x |
| Wed, 09 Mar 2022 | US$2.1t | US$424.6b | US$47.1b | 27.1x | 43.7x | 4.9x |
| Fri, 04 Feb 2022 | US$2.5t | US$418.6b | US$48.9b | 30.8x | 50.1x | 5.9x |
| Sun, 02 Jan 2022 | US$2.8t | US$432.3b | US$48.3b | 38.1x | 57.1x | 6.4x |
| Tue, 30 Nov 2021 | US$2.7t | US$429.0b | US$48.1b | 34.7x | 56.1x | 6.3x |
| Thu, 28 Oct 2021 | US$2.9t | US$397.7b | US$47.9b | 35.3x | 59.7x | 7.2x |
| Sat, 25 Sep 2021 | US$3.0t | US$395.6b | US$46.6b | 34.9x | 63.5x | 7.5x |
| Mon, 23 Aug 2021 | US$2.9t | US$389.5b | US$46.2b | 33.3x | 62.6x | 7.4x |
| Sat, 10 Jul 2021 | US$2.8t | US$387.8b | US$47.0b | 34.3x | 60.6x | 7.3x |
| Fri, 02 Apr 2021 | US$2.6t | US$369.3b | US$42.5b | 32.6x | 60.2x | 6.9x |
| Mon, 04 Jan 2021 | US$2.5t | US$352.3b | US$37.4b | 31.7x | 67.3x | 7.1x |
| Thu, 08 Oct 2020 | US$2.2t | US$346.8b | US$36.1b | 30.6x | 61x | 6.4x |
| Wed, 01 Jul 2020 | US$1.9t | US$337.7b | US$36.7b | 31.9x | 52.8x | 5.7x |
| Sat, 04 Apr 2020 | US$1.5t | US$340.7b | US$39.3b | 23.3x | 37.6x | 4.3x |
| Tue, 07 Jan 2020 | US$1.8t | US$334.7b | US$44.1b | 34x | 40.7x | 5.4x |
Price to Earnings Ratio
41.8x
Current Industry PE
- Investors are pessimistic on the American IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 50.0x which is lower than its 3-year average PE of 53.1x.
- The 3-year average PS ratio of 5.9x is higher than the industry's current PS ratio of 4.3x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 2.8% per year over the last three years.
- Meanwhile revenues for these companies have grown 12% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the U.S. Tech industry?
| US Market | 1.26% | |
| Tech | 0.86% | |
| IT | 1.27% | |
| IT Consulting | 2.10% | |
| Data Processing Services | 1.33% | |
| Internet Services and Infrastructure | -1.12% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 32.8x.
- Analysts are expecting annual earnings growth of 31.3%, which is higher than its past year's earnings growth of 24.9% per year.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 31% over the next 5 years.
- This is better than its past earnings growth rate of 25% per year.
- In contrast, the Data Processing Services industry is expected to see its earnings grow by 16% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| MA Mastercard | US$351.29 | 2.2% +US$7.3b | 8.4% | PE34.5x | |
| ACN Accenture | US$296.40 | 3.5% +US$6.2b | -16.2% | PE27.2x | |
| V Visa | US$213.79 | 1.4% +US$6.2b | 8.2% | PE30.1x | |
| ADP Automatic Data Processing | US$263.95 | 3.1% +US$3.3b | 15.0% | PE36.2x | |
| FIS Fidelity National Information Services | US$65.98 | 7.4% +US$2.7b | -38.9% | PE41.8x |
