Global Payments Valuation
| GPN Stock | USD 117.05 0.72 0.62% |
At this time, the firm appears to be undervalued. Global Payments retains a regular Real Value of $129.43 per share. The prevalent price of the firm is $117.05. Our model calculates the value of Global Payments from evaluating the firm fundamentals such as Current Valuation of 43.84 B, return on asset of 0.0316, and Return On Equity of 0.0606 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Global Payments' valuation include:
Price Book 1.2811 | Enterprise Value 43.8 B | Enterprise Value Ebitda 10.908 | Price Sales 2.9534 | Forward PE 8.8889 |
Undervalued
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 117.05 | Real 129.43 | Target 146.78 | Hype 117.11 | Naive 114.87 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Global Payments' intrinsic value based on its ongoing forecasts of Global Payments' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Global Payments' closest peers.
Global Payments Cash |
|
Global Valuation Trend
Knowing Global Payments' actual value is paramount for traders when making sound investment determinations. Using both Global Payments' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Global Revenue by Product
Global Payments Total Value Analysis
Global Payments is currently projected to have company total value of 43.84 B with market capitalization of 29.61 B, debt of 17.38 B, and cash on hands of 2 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Global Payments fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
43.84 B | 29.61 B | 17.38 B | 2 B |
Global Payments Investor Information
About 95.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 1.28. Some equities with similar Price to Book (P/B) outperform the market in the long run. Global Payments has Price/Earnings To Growth (PEG) ratio of 0.45. The entity recorded earning per share (EPS) of 5.31. The firm last dividend was issued on the 13th of December 2024. Global Payments had 2:1 split on the 3rd of November 2015. Based on the key indicators related to Global Payments' liquidity, profitability, solvency, and operating efficiency, Global Payments may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.19 | 0.1778 |
|
| |||||
| Operating Income | 1.8 B | 1.7 B |
|
|
Global Payments Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Global Payments has an asset utilization ratio of 19.09 percent. This suggests that the Company is making $0.19 for each dollar of assets. An increasing asset utilization means that Global Payments is more efficient with each dollar of assets it utilizes for everyday operations.Global Payments Ownership Allocation
Global Payments has a total of 254.5 Million outstanding shares. The majority of Global Payments outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Global Payments to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Global Payments. Please pay attention to any change in the institutional holdings of Global Payments as this could imply that something significant has changed or is about to change at the company. Please note that on October 14, 2024, Representative Michael McCaul of US Congress acquired $100k to $250k worth of Global Payments's common stock.Global Payments Profitability Analysis
The company reported the last year's revenue of 9.65 B. Total Income to common stockholders was 1.03 B with profit before taxes, overhead, and interest of 5.23 B.Global Payments Past Distributions to stockholders
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.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5.9 B | 6.2 B | |
| Pretax Profit Margin | 0.12 | 0.17 | |
| Operating Profit Margin | 0.18 | 0.19 | |
| Net Profit Margin | 0.10 | 0.10 | |
| Gross Profit Margin | 0.61 | 0.46 |
Global Payments Quarterly Retained Earnings |
|
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
At this time, Global Payments' Dividends Paid is very stable compared to the past year. As of the 22nd of November 2024, Dividend Yield is likely to grow to 0.01, while Dividend Payout Ratio is likely to drop 0.15. . At this time, Global Payments' Retained Earnings are very stable compared to the past year. As of the 22nd of November 2024, Earnings Yield is likely to grow to 0.04, while Retained Earnings Total Equity is likely to drop about 1.7 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 260.4 M | 273.5 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.26 | 0.15 | |
| Dividend Paid And Capex Coverage Ratio | 2.45 | 4.66 |
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 | 261.7 M | |
| Quarterly Earnings Growth Y O Y | -0.109 | |
| Forward Price Earnings | 8.8889 |
Global Payments Current Valuation Indicators
Global Payments' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Global Payments' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Global Payments, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Global Payments' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Global Payments' worth.When determining whether Global Payments offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Global Payments' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Global Payments Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Global Payments Stock: 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 american community survey. To learn how to invest in Global Stock, please use our How to Invest in Global Payments guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Is Transaction & Payment Processing Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Global Payments. If investors know Global will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Global Payments listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.11) | Dividend Share 1 | Earnings Share 5.31 | Revenue Per Share 39.009 | Quarterly Revenue Growth 0.051 |
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. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. 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. However, Global Payments' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.