Is Global Payments a Value Opportunity After Falling 34% in 2025?

• Ever wondered if Global Payments is a hidden value opportunity or just another name in fintech? If you are searching for stocks that might be overlooked by the market, you are in the right place.
• Despite being part of a dynamic industry, Global Payments' share price has slipped by 0.8% over the past week and is down 14.2% for the last month, resulting in a significant 34.3% loss year-to-date.
• Several sector-wide shifts and evolving market sentiment have recently grabbed investors' attention. Headlines about increased competition, regulatory changes, and fintech expansion have amplified volatility. These factors have made price movements more pronounced for Global Payments than in previous years.
• It is interesting to note that Global Payments has a valuation score of 5 out of 6, suggesting the stock clears nearly all our value benchmarks. Next, we will dive into what this score really means by looking at different ways to value the company. Towards the end, we will reveal a method for valuation that can help you look beyond the usual numbers.

Find out why Global Payments's -36.5% return over the last year is lagging behind its peers.

Approach 1: Global Payments Excess Returns Analysis

The Excess Returns model evaluates how much value a company creates over and above the cost of its own equity capital. This method focuses on the difference between the returns Global Payments generates on its shareholders' investments compared to what it must pay to access that equity. In essence, if a company consistently earns more on its equity than it costs to finance, it is creating extra value for shareholders.

For Global Payments, the latest data points to a Book Value of $95.80 per share and a Stable EPS of $13.17 per share, calculated from weighted future Return on Equity estimates provided by seven analysts. The Cost of Equity stands at $8.86 per share, resulting in an Excess Return of $4.30 per share. The company’s average Return on Equity is 13.65%, while the Stable Book Value is projected at $96.44 per share, based on consensus from three analysts.

This analysis suggests an intrinsic value of $169.01 per share for Global Payments. The stock is currently trading at a 56.5% discount to this valuation. Relative to current market prices, this implies the stock is significantly undervalued on an excess returns basis.

Result: UNDERVALUED

Our Excess Returns analysis suggests Global Payments is undervalued by 56.5%. Track this in your watchlist or portfolio, or discover 917 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Global Payments.

Approach 2: Global Payments Price vs Earnings

The price-to-earnings (PE) ratio is widely considered a reliable valuation tool for profitable companies like Global Payments, as it directly compares the price investors are willing to pay per dollar of earnings. This makes it useful for quickly assessing whether a stock is cheap or expensive relative to its profit generation.

The "right" PE ratio for a stock often depends on expectations for future growth and the risks the company faces. Higher expected growth or lower perceived risk typically justify a higher PE, while lower growth or higher risk usually mean a lower PE is appropriate.

Currently, Global Payments trades on a PE ratio of 10.6x. This is below the Diversified Financial industry average of 13.2x and well below the peer average of 60.4x. On the surface, this might suggest the stock is undervalued compared to its peers and industry.

However, Simply Wall St’s Fair Ratio metric refines this comparison. The Fair Ratio, at 16.26x in this case, is calculated using factors such as Global Payments' earnings growth prospects, profit margins, risk profile, size, and broader industry context. This method goes further than simple peer or industry benchmarking by tailoring the expected multiple to the company’s unique fundamentals.

Since Global Payments’ actual PE of 10.6x is substantially below the Fair Ratio of 16.26x, the stock appears undervalued based on this deeper, fundamental assessment.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1422 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Global Payments Narrative

Earlier, we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is a simple, interactive tool that allows investors to build their investment story for a company, connecting personal expectations for things like future revenue, profits, and margins directly to a fair value estimate.

Rather than relying solely on static metrics or one-size-fits-all ratios, the Narrative approach lets you link your own perspective, whether optimistic, cautious, or neutral, about Global Payments' business direction and industry trends to a forward-looking financial forecast and automated valuation. This gives meaning to the numbers and turns them into a story about where you think the business is headed.

Narratives are easy to use, accessible to everyone on Simply Wall St’s Community page, and updated dynamically whenever new data, earnings results, or industry news break, so your view always stays relevant. They help you decide whether to buy, hold, or consider selling by clearly showing how your fair value stacks up against the current share price.

For example, some users might see near-term catalysts and rapid integration of acquisitions, resulting in a high Narrative fair value of $194 per share. Others focusing on risks such as competition and margin pressure may arrive at a significantly lower value of $65 per share, highlighting just how much your perspective shapes your investment outlook.

Do you think there's more to the story for Global Payments? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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