Global Payments Valuation

GPN Stock  USD 133.20  1.43  1.09%   
At this time, the firm appears to be undervalued. Global Payments retains a regular Real Value of $139.69 per share. The prevalent price of the firm is $133.2. Our model calculates the value of Global Payments from evaluating the firm fundamentals such as Current Valuation of 48.9 B, return on equity of 0.0444, and Return On Asset of 0.029 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage obtaining undervalued assets and abandoning overvalued assets since, at some point, asset prices and their ongoing real values will come together.
Price Book
1.4615
Enterprise Value
48.9 B
Enterprise Value Ebitda
13.5576
Price Sales
3.4816
Forward PE
11.3379
Undervalued
Today
133.20
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.
Our valuation method for Global Payments is useful when determining the fair value of the Global stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Global Payments. 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  133.2 Real  139.69 Target  146.78 Hype  133.23 Naive  134.17
The real value of Global Stock, also known as its intrinsic value, is the underlying worth of Global Payments Company, which is reflected in its stock price. It is based on Global Payments' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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.
119.88
Downside
139.69
Real Value
141.04
Upside
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:
Earnings
Estimates (0)
LowProjectedHigh
2.482.572.64
Details
Hype
Prediction
LowEstimatedHigh
131.88133.23134.58
Details
Potential
Annual Dividend
LowForecastedHigh
0.660.670.67
Details
37 Analysts
Consensus
LowTarget PriceHigh
133.57146.78162.93
Details

Global Payments Investments

(4.14 Billion)

Global Payments Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Global Payments's current stock value. Our valuation model uses many indicators to compare Global Payments value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Global Payments competition to find correlations between indicators driving Global Payments's intrinsic value. More Info.
Global Payments is rated # 3 in price to sales category among related companies. It is rated # 2 in net asset category among related companies making up about  14,524,984,490  of Net Asset per Price To Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Global Payments by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Global Payments' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Global Payments' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Global Payments' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Global Payments and how it compares across the competition.

About Global Payments Valuation

The stock valuation mechanism determines the current worth of Global Payments on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Global Payments's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Global Payments's related companies.
Last ReportedProjected for 2024
Gross Profit5.9 B6.2 B
Pretax Profit Margin 0.12  0.17 
Operating Profit Margin 0.18  0.19 
Net Profit Margin 0.10  0.11 
Gross Profit Margin 0.61  0.46 

Global Payments Quarterly Retained Earnings

3.46 Billion

8 Steps to conduct Global Payments' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Global Payments' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Global Payments' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Global Payments' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Global Payments' revenue streams: Identify Global Payments' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Global Payments' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Global Payments' growth potential: Evaluate Global Payments' management, business model, and growth potential.
  • Determine Global Payments' financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Global Payments' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Global Payments' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Global Payments' value is low or high relative to the company's performance and growth projections. Determining the market value of Global Payments can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

As of the 28th of March 2024, Dividend Yield is likely to grow to 0.01, though Dividends Paid is likely to grow to (247.4 M). . At this time, Global Payments' Retained Earnings are very stable compared to the past year. As of the 28th of March 2024, Price Earnings Ratio is likely to grow to 35.73, while Retained Earnings Total Equity is likely to drop about 1.7 B.
Last ReportedProjected for 2024
Dividends Paid-260.4 M-247.4 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.26  0.16 
Dividend Paid And Capex Coverage Ratio(5.65)(5.94)
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. Note, investing in growth stocks can be very risky. If the company such as Global Payments does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding261.7 M
Quarterly Earnings Growth Y O Y0.494
Forward Price Earnings11.3379

Global Payments Current Valuation Indicators

Valuation refers to the process of determining the present value of Global Payments and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Global we look at many different elements of the entity such as Global's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Global Payments' valuation analysis is also 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 tightly coupled 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

Complementary Tools for Global Stock analysis

When running Global Payments' price analysis, check to measure Global Payments' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Global Payments is operating at the current time. Most of Global Payments' value examination focuses on studying past and present price action to predict the probability of Global Payments' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Global Payments' price. Additionally, you may evaluate how the addition of Global Payments to your portfolios can decrease your overall portfolio volatility.
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Is Global Payments' industry 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
0.494
Dividend Share
1
Earnings Share
3.77
Revenue Per Share
36.972
Quarterly Revenue Growth
0.08
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.