Revisiting Global Payments (GPN) Valuation After a Tough Year for the Share Price

Global Payments (GPN) has been grinding through a challenging year, with the stock down roughly 27% in 2024 even as revenue and net income continue to inch higher. Investors are asking whether this gap signals opportunity.

See our latest analysis for Global Payments.

Despite the tough year to date, the recent 7 day and 30 day share price returns of 4.8% and 10.2% suggest sentiment is stabilising, even as the 1 year total shareholder return remains firmly negative.

If this shift in momentum has you rethinking your watchlist, it might be worth exploring other payment and fintech names via high growth tech and AI stocks.

With earnings still growing and the share price lagging both history and analyst targets, the key question now is whether Global Payments is quietly undervalued or if the market is already pricing in its future growth.

Most Popular Narrative: 21.8% Undervalued

With Global Payments last closing at $81.63 against a narrative fair value of about $104.36, the storyline frames today’s price as a potential discount.

The Worldpay acquisition and operational transformation program are creating scale benefits, cost efficiencies, and significant cross-selling opportunities (e.g., selling Genius into Worldpay's merchant base); these are expected to boost earnings growth and margin expansion after integration.

Read the complete narrative.

Want to see how this bold integration plan translates into future profits, revenue momentum, and a reset valuation multiple? The narrative leans on specific growth, margin, and discount rate assumptions that could radically reshape what “cheap” looks like for Global Payments.

Result: Fair Value of $104.36 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upside case depends on smooth Worldpay integration and resilient margins, both of which could falter amid tougher competition and regulatory shifts.

Find out about the key risks to this Global Payments narrative.

Build Your Own Global Payments Narrative

If you see the story differently or prefer to dig into the numbers yourself, you can build a custom view in just a few minutes: Do it your way.

A great starting point for your Global Payments research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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