Fidelity National Informational Services DCF Stock Analysis.
Here’s my assumptions:
Risk Free Rate (10 Years Interest Rate Swap): 4.135%
Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.62%
Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 4.5%
Historical Data
Revenue growth in the last 10 years (CAGR): 1.96%
Earnings growth in the last 10 years (CAGR): 8.66%
Unlevered Free Cash Flow growth in the last 10 years (CAGR): 13.02%
Future Assumptions
nd of Year FCF growth: 7%
Growth until end of 2026: 10%
Growth until end of 2034: 7%
Perpetual growth: 3%
Net Debt: 12.497B
Outstanding Stock Options Present Value Assumption: $0.046B
Assumptions used for the Black & Scholes model:
- Stock Price: $63.35
- Strike Price: $110.51
- Time to expiration: 3.5 years
- Risk Free Rate: 4.135%
- Volatility: 37.6%
(I tend to shorten the expiration time of options because I expect them to be exercised before the expiration date.)
Restricted Stock Units Present Value Assumption: $0.380B
Stock Valuation based on these assumptions: $150
Last update 01/18/2026
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All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.
I don’t have a position in Fidelity National Informational Services (FIS) and I don’t plan to add a position in the coming days.