Global Payments Valuation
| GPN Stock | USD 70.80 3.59 5.34% |
At this time, the firm appears to be fairly valued. Global Payments retains a regular Real Value of $72.76 per share. The prevalent price of the firm is $70.8. Our model calculates the value of Global Payments from evaluating the firm fundamentals such as Current Valuation of 33.68 B, return on asset of 0.0325, and Return On Equity of 0.0723 as well as inspecting its technical indicators and probability of bankruptcy.
Fairly Valued
Today
Please note that Global Payments' price fluctuation is very steady at this time. Calculation of the real value of Global Payments is based on 3 months time horizon. Increasing Global Payments' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Global Payments is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Global Stock. However, Global Payments' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 70.8 | Real 72.76 | Hype 70.8 | Naive 68.46 |
The intrinsic value of Global Payments' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Global Payments' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Global Payments helps investors to forecast how Global stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Global Payments more accurately as focusing exclusively on Global Payments' fundamentals will not take into account other important factors: About Global Payments Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Global Payments. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Global Payments based exclusively on its fundamental and basic technical indicators. By analyzing Global Payments's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Global Payments's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Global Payments. We calculate exposure to Global Payments's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Global Payments's related companies.Global Payments Inc. provides payment technology and software solutions for card, electronic, check, and digital-based payments in the Americas, Europe, and the Asia-Pacific. The company was founded in 1967 and is headquartered in Atlanta, Georgia. Global Payments operates under Specialty Business Services classification in the United States and is traded on New York Stock Exchange. It employs 25000 people.
A single share of Global Payments represents a small ownership stake in the entity. As a stockholder of Global, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Global Payments Dividends Analysis For Valuation
There are various types of dividends Global Payments can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Global shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Global Payments directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Global pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Global Payments by the value of the dividends paid out.
Global Payments Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 254.8 M | |
| Quarterly Earnings Growth Y O Y | 1.131 | |
| Forward Price Earnings | 5.2938 |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Global Payments. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. To learn how to invest in Global Stock, please use our How to Invest in Global Payments guide.You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Will Transaction & Payment Processing Services sector continue expanding? Could Global diversify its offerings? Factors like these will boost the valuation of Global Payments. Market participants price Global higher when confident in its future expansion prospects. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Global Payments data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
The market value of Global Payments is measured differently than its book value, which is the value of Global that is recorded on the company's balance sheet. Investors also form their own opinion of Global Payments' value that differs from its market value or its book value, called intrinsic value, which is Global Payments' true underlying value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Because Global Payments' market value can be influenced by many factors that don't directly affect Global Payments' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Global Payments' value and its price as these two are different measures arrived at by different means. Investors typically determine if Global Payments is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Meanwhile, Global Payments' quoted price indicates the marketplace figure where supply meets demand through bilateral consent.