USD 96.73 as of today(2020-08-03). In depth view into Global Payments Intrinsic Value: Projected FCF explanation, calculation, historical data and more" />GPN Intrinsic Value: Projected FCF | Global Payments - GuruFocus.com
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Global Payments Intrinsic Value: Projected FCF

: USD 96.73 (As of Today)
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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2020-08-03), Global Payments's Intrinsic Value: Projected FCF is USD 96.73. The stock price of Global Payments is USD 179.73. Therefore, Global Payments's Price-to-Intrinsic-Value-Projected-FCF of today is 1.8.

NYSE:GPN' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.66   Med: 1.23   Max: 3
Current: 1.84

0.66
3

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Global Payments was 3.00. The lowest was 0.66. And the median was 1.23.

NYSE:GPN's Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
74% of the 583 Companies
in the Business Services industry.

( Industry Median: 0.96 vs. NYSE:GPN: 1.84 )

Global Payments Intrinsic Value: Projected FCF Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Global Payments Annual Data
May10 May11 May12 May13 May14 May15 May16 Dec17 Dec18 Dec19
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.47 40.55 43.78 55.66 95.94

Global Payments Quarterly Data
May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 56.18 54.16 168.03 95.94 96.73

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Global Payments Intrinsic Value: Projected FCF Distribution

* The bar in red indicates where Global Payments's Intrinsic Value: Projected FCF falls into.



Global Payments Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Global Payments's Free Cash Flow(6 year avg) = USD 574.49.

Global Payments's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Mar20)*0.8)/Shares Outstanding (Diluted Average)
=(12.608723088515*574.48566666667+27320.811*0.8)/300.838
=96.73

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Global Payments  (NYSE:GPN) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Global Payments's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=179.73/96.73039805251
=1.86

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Global Payments Intrinsic Value: Projected FCF Related Terms


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