FISV - Fiserv Looks Expensive. Is It a Buy?
Fiserv (NASDAQ: FISV) has been one of the most consistent and best-performing stocks over the past decade. It has had 11 straight years of positive annual returns through 2019, and over the last 10 years it has posted an annualized return of about 23%.
Last year it made a big move to buy First Data, which gives the company greater scale and broader offerings, as First Data brings complementary capacities. But it also brought in a lot of debt. On top of that, earnings and revenue have been challenged by a global pandemic and resulting recession. At Wednesday's close, Fiserv's stock price was down about 11% on the year.
After a decade of strong growth, Fiserv's multiples are very high, with a price-to-earnings ratio of around 82. Given its muted growth and high valuation, is Fiserv too expensive right now?
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Fiserv Looks Expensive. Is It a Buy?