Companies · FISV · Financial Svcs. (Non-bank & Insurance)
What does Fiserv's price assume?
The margin the price assumes
Revenue grows as its record suggests; the operating margin is solved at today's price.
At $63.90 on November 11, 2026, with growth of 7.4% a year, the price assumes an operating margin of 74.7% by year 5.
The price assumes
74.7%
Operating margin by year 5, solved at the price
Its 10-year median
26.5%
Fiscal 2016–2025, adjusted for R&D and leases
Its industry
18.7%
Financial Svcs. (Non-bank & Insurance), Damodaran Online, January 2026
The price assumes a margin above the company's own median and above its industry's.
The numbers behind the chart
| Fiscal year | Adjusted operating margin |
|---|---|
| 2016 | 26.2% |
| 2017 | 26.9% |
| 2018 | 30.1% |
| 2019 | 16.8% |
| 2020 | 13.1% |
| 2021 | 14.6% |
| 2022 | 21.6% |
| 2023 | 26.7% |
| 2024 | 29.2% |
| 2025 | 28.0% |
- Revenue growth, years 1 to 5
- 7.4% a yearFrom its own revenue growth, the lower of its 5- and 10-year rates (here the 5-year).SEC filings, revenue to fiscal 2025
- Margin path
- From today's margin to 74.7% by year 5Solved at the price. After that, the margin holds.
The growth the price assumes
Growth isn't read this way for real estate trusts and fee-based financial companies: at their industry's capital needs, the answer would describe the industry's figures more than the company.
The assumptions both views share
These are neutral settings, the same for every company. Each view holds them and solves for one driver at today's price.
- Reinvestment
- $0.07 of revenue for each $1 investedThe industry's sales-to-capital ratio: how much new capital growth needs.Damodaran Online, January 2026 industry data, Financial Svcs. (Non-bank & Insurance)
- Cost of capital
- 5.68%The return investors need for the risk: the industry's beta, the market's risk premium, and debt rated A3/A- from its median margin, with a stated 5-year debt maturity. Built by the engine from the parts listed under Sources, each with its date.
- After year 10
- Growth at the riskfree rate, foreverNew investment earns its cost of capital and no more, so growth after year 10 adds no value, and the cost of capital moves to a mature company's.
Worth knowing
- Revenue grew 7.4% a year over five years and grew 15.0% over ten: the record points two ways.
- Its industry's margin today is more than 3 points away from its median over the last 6 years of industry data.
This is a mechanical starting point with neutral assumptions, not a valuation. The story decides.
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- Price: Qualuation's records, close of November 11, 2026.
- 10-K for the period ended December 31, 2025, filed February 19, 2026 (SEC EDGAR, accession 0000798354-26-000009).
- 10-Q for the period ended June 30, 2026, filed August 7, 2026 (SEC EDGAR, accession 0000798354-26-000031).
- Margin record: SEC filings, fiscal 2016-2025, operating margin adjusted for R&D and leases.
- Industry margin: Damodaran Online, January 2026 industry data, Financial Svcs. (Non-bank & Insurance), adjusted for R&D and leases.
- Sales to capital: Damodaran Online, January 2026 industry data, Financial Svcs. (Non-bank & Insurance).
- US 10-year Treasury yield (FRED), October 29, 2026.
- Less the US default spread (Damodaran Online, July 2026).
- Industry beta, Financial Svcs. (Non-bank & Insurance) (Damodaran Online, January 2026).
- Equity risk premium (Damodaran Online, October 2026).
- Debt rated A3/A- at its median margin (rating table, Damodaran Online, January 2026).
- The margin the price assumes: solved by the engine at the price on November 12, 2026, with the assumptions above.