Let’s talk about the popular Fidelity National Information Services Inc (NYSE:FIS). The company’s shares saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $102.88 and falling to the lows of $92.74. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Fidelity National Information Services’s current trading price of $98.71 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Fidelity National Information Services’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Fidelity National Information Services
What is Fidelity National Information Services worth?According to my valuation model, Fidelity National Information Services seems to be fairly priced at around 1% above my intrinsic value, which means if you buy Fidelity National Information Services today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $97.33, there’s only an insignificant downside when the price falls to its real value. Furthermore, Fidelity National Information Services’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.
Can we expect growth from Fidelity National Information Services?Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. However, with a relatively muted profit growth of 0.17% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Fidelity National Information Services, at least in the short term.
What this means for you:
Are you a shareholder? It seems like the market has already priced in FIS’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on FIS, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Fidelity National Information Services. You can find everything you need to know about Fidelity National Information Services in the latest infographic research report. If you are no longer interested in Fidelity National Information Services, you can use our free platform to see my list of over 50 other stocks with a high growth potential.