Fidelity National Information Services, Inc. (FIS) DCF Valuation & Fundamental Primer
Fidelity National Information Services, Inc. (FIS) currently trades at $66.91 with an enterprise value of $19.26B. Our proprietary institutional model rates Fidelity National Information Services, Inc. at 67/100 (Grade: B+ · Quality Software Operator). The current market price prices in an implied 5-year revenue CAGR of 15.2% vs. historical growth of -5.2% (Aggressive Growth Expectations Priced In).
Institutional fundamental teardown of Fidelity National Information Services, Inc. (FIS) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
Fidelity National Information Services, Inc. (FIS) 3-Scenario DCF Valuation Range
Stress-test FIS's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.
Split between 5-Year Explicit Cash Flows and Discounted Terminal Value
2D Institutional Valuation Sensitivity Heatmap
Implied share price & upside/downside spread across 25 valuation states (Current Price: $66.91).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $20.43 -69% | $22.75 -66% | $25.45 -62% | $28.64 -57% | $32.47 -51% |
| 9.3% | $16.60 -75% | $18.43 -72% | $20.52 -69% | $22.95 -66% | $25.80 -61% |
| 10.0% | $13.45 -80% | $14.92 -78% | $16.58 -75% | $18.48 -72% | $20.67 -69% |
| 10.8% | $10.80 -84% | $12.00 -82% | $13.35 -80% | $14.86 -78% | $16.59 -75% |
| 11.5% | $8.55 -87% | $9.54 -86% | $10.65 -84% | $11.88 -82% | $13.27 -80% |
Institutional Software Quality Scorecard (67/100 · Grade B+)
Solid software model with clear operating leverage, partially offset by standard SBC or moderate burn.
Strong cash conversion; 100%+ of operating profit turns into free cash
Minimal dilution friction; management compensation aligned with shareholders
Sub-par gross margins; higher cost of delivery or hardware/services mix
Moderate leverage or cash burn; monitor liquidity runway
Core Investment Strengths & Moats
- High cash conversion: 100%+ of operating income converted to free cash flow
- Low dilution friction: SBC is only 1.8% of revenue
Key Operational & Dilution Risks
- Lower software gross margins (37.6%), indicating higher hosting or service delivery drag
Reverse-DCF Solver: What Growth is Priced Into FIS?
The current share price demands 15.2% 5-year CAGR (16.7% net of SBC & dilution)—a +20.4% acceleration over historical run-rate (-5.2%). Any growth slowdown risks valuation multiple contraction.
Headline Reverse-DCF ignores Stock-Based Compensation (1.8% of revenue) and annual share dilution (0.2%/yr). Accounting for both requires 16.7% 5-year revenue CAGR to justify $66.91/sh on a true per-share economic cash flow basis.
Fidelity National Information Services, Inc. (FIS) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $10.13B | $10.13B | $9.60B | $9.10B | $8.62B | $8.17B | $7.74B |
| Gross Profit | $3.80B | $3.80B | $3.60B | $3.42B | $3.24B | $3.07B | $2.91B |
| Operating Income (EBIT) | $1.71B | $1.71B | $1.62B | $1.54B | $1.46B | $1.38B | $1.31B |
| Stock-Based Compensation (SBC) | $186.0M | $186.3M | $176.6M | $167.4M | $158.6M | $150.3M | $142.4M |
| Unlevered Free Cash Flow (FCF) | $1.97B | $1.97B | $1.87B | $1.77B | $1.68B | $1.59B | $1.51B |
| SBC-Adjusted True Cash Flow | $1.79B | $1.79B | $1.69B | $1.61B | $1.52B | $1.44B | $1.37B |
Software & Cloud Services Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = -2.8 + 0.29 × (Rule of 40) · R² = 53%Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| Fidelity National Information Services, Inc. | FIS | $34.65B | $10.13B | 37.6% | 19.5% | 14.3% | 1.8% | 4.5× |
| ServiceNow | NOW | $152.61B | $10.98B | 79.2% | 31.1% | 54.2% | 15.9% | 13.9× |
| Workday, Inc. | WDAY | $50.35B | $8.00B | 75.0% | 27.4% | 43.9% | 19.0% | 6.4× |
| Salesforce | CRM | $217.10B | $37.90B | 77.2% | 32.8% | 42.8% | 8.4% | 5.8× |
| Datadog | DDOG | $46.05B | $2.68B | 80.8% | 31.1% | 57.7% | 21.3% | 17.4× |
| Snowflake Inc. | SNOW | $71.79B | $3.63B | 66.5% | 25.2% | 57.7% | 40.8% | 20.0× |
| Hubspot | HUBS | $19.89B | $2.63B | 85.0% | 21.3% | 52.7% | 19.2% | 7.7× |
| Peer Cohort Median Benchmark (N=6) | 78.2% | 29.2% | 53.5% | 19.1% | 10.8× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 4.5× | $45.36B | $34.65B | $66.91 | 0.0% |
| -20% Multiple Compression | 3.6× | $36.29B | $25.58B | $49.39 | -20.0% |
| -35% Multiple Compression | 2.9× | $29.48B | $18.77B | $36.25 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $50.64B | $39.93B | $77.10 | +11.6% |
Frequently Asked Questions: Fidelity National Information Services, Inc. (FIS) Valuation
What is Fidelity National Information Services, Inc. (FIS)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, Fidelity National Information Services, Inc. (FIS) has a Base Case implied value of $16.51 per share (with a Bear Case of $6.62 and a Bull Case of $25.09), compared to its current price of $66.91. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is Fidelity National Information Services, Inc. (FIS)'s Rule of 40 score and Free Cash Flow margin?
Fidelity National Information Services, Inc. achieves a Rule of 40 score of 14.3%, combining a -5.2% revenue growth run-rate with a 19.5% TTM free cash flow margin on $10.13B in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.
What revenue growth rate is priced into FIS stock according to Reverse-DCF analysis?
At $66.91 per share (Enterprise Value of $45.36B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 15.2%, compared to Fidelity National Information Services, Inc.'s historical CAGR of -5.2%. Overall market expectations are rated as "Aggressive Growth Expectations Priced In".
How does Fidelity National Information Services, Inc. compare to Software & Cloud Services software peers?
Fidelity National Information Services, Inc. (FIS) earns an institutional Software Quality Score of 67/100 (Grade B+ — Quality Software Operator). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.
How does Stock-Based Compensation (SBC) impact Fidelity National Information Services, Inc. (FIS)'s valuation?
Fidelity National Information Services, Inc. recorded $186.0M in TTM stock-based compensation (1.8% of revenue). When treating SBC as a cash-equivalent compensation expense, Fidelity National Information Services, Inc.'s SBC-adjusted free cash flow yield is 5.2%, scoring 25/25 on our Shareholder Dilution Friction pillar.