What Is Fidelity National Information Services, Inc.'s (NYSE:FIS) Share Price Doing?

Today we're going to take a look at the well-established Fidelity National Information Services, Inc. (NYSE:FIS). The company's stock saw significant share price movement during recent months on the NYSE, rising to highs of US$151 and falling to the lows of US$124. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Fidelity National Information Services' current trading price of US$135 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.

See our latest analysis for Fidelity National Information Services

Is Fidelity National Information Services still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 4.4% below my intrinsic value, which means if you buy Fidelity National Information Services today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $141.05, then there’s not much of an upside to gain from mispricing. What's more, Fidelity National Information Services’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Fidelity National Information Services look like?

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. With revenues expected to grow by a double-digit 24% over the next couple of years, the outlook is positive for Fidelity National Information Services. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has already priced in FIS’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. 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 optimistic prospect is encouraging for the company, which 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.

Diving deeper into the forecasts for Fidelity National Information Services mentioned earlier will help you understand how analysts view the stock going forward. Luckily, you can check out what analysts are forecasting by clicking here.

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This article by Simply Wall St is general in nature. 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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