Shift4 Stock Valuation

FOUR
 Stock
  

USD 33.35  0.42  1.24%   

How much is Shift4 Payments worth today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Shift4 Payments, is its stock price multiplied by the total number of shares outstanding, calculating Shift4 Payments' enterprise value requires a different approach. It uses Shift4 Payments' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of 07/06/2022, Free Cash Flow is likely to drop to about (47.1 M). In addition to that, Enterprise Value is likely to drop to about 5.2 B.
Shift4 Payments has a current Real Value of $49.68 per share. The regular price of the company is $33.35. At this time, the company appears to be undervalued. Our model measures the value of Shift4 Payments from inspecting the company fundamentals such as Shares Outstanding of 51.52 M, operating margin of (1.24) %, and Return On Equity of (13.84) % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend buying undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
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Shift4 Payments Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Shift4 Payments's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Shift4 Most Recent Valuation Data

Price Book
7.01
EPS Estimate Next Quarter
0.25
Price Sales
2.06
EBITDA
66.5 M
Beta
1.9
Fiscal Year End
December
Industry
Software-Infrastructure
Undervalued
Today 33.35
Please note that Shift4 Payments' price fluctuation is very steady at this time. Calculation of the real value of Shift4 Payments is based on 3 months time horizon. Increasing Shift4 Payments' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Shift4 Payments is useful when determining the fair value of the Shift4 stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Shift4 Payments. Since Shift4 Payments is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Shift4 Stock. However, Shift4 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.
49.68
Real Value
54.75
Upside
Estimating the potential upside or downside of Shift4 Payments helps investors to forecast how Shift4 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 Shift4 Payments more accurately as focusing exclusively on Shift4 Payments' fundamentals will not take into account other important factors:
Earnings
Estimates (2)
LowProjected EPSHigh
0.190.200.21
Details
Hype
Prediction
LowEstimated ValueHigh
27.2232.2937.36
Details
Naive
Forecast
LowNext ValueHigh
34.9340.0045.07
Details
7 Analysts
Consensus
LowTarget PriceHigh
69.0097.50115.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Shift4 Payments' intrinsic value based on its ongoing forecasts of Shift4 Payments' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Shift4 Payments' closest peers. When choosing an evaluation method for Shift4 Payments, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Shift4 Valuation Drivers Correlation

Many accounts on the financial statements of Shift4 Payments are highly interrelated and sometimes correlated. Consequently, when conducting Shift4's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Shift4
Click cells to compare fundamentals

Shift4 Valuation Trend

Knowing Shift4 Payments' actual value is paramount for traders to make sound investment determinations. Shift4 Payments' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Shift4 Payments' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Shift4 Payments' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Shift4 Payments Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Shift4 Payments's current stock value. Our valuation model uses many indicators to compare Shift4 Payments value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Shift4 Payments competition to find correlations between indicators driving Shift4 Payments's intrinsic value. More Info.
Shift4 Payments is rated below average in price to sales category among related companies. It is one of the top stocks in beta category among related companies totaling about  1.54  of Beta per Price to Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Shift4 Payments by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Shift4 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 Shift4 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 Shift4 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 Shift4 Payments and how it compares across the competition.

About Shift4 Payments Valuation

The equity valuation mechanism determines the current worth of Shift4 Payments on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Shift4 Payments. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Shift4 Payments based exclusively on its fundamental and basic technical indicators. By analyzing Shift4 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 Shift4 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 Shift4 Payments. We calculate exposure to Shift4 Payments's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Shift4 Payments's related companies.
Last ReportedProjected for 2022
Gross Profit278.4 M258 M
Profit Margin(0.035) (0.0378) 
Shift4 Payments, Inc. provides integrated payment processing and technology solutions in the United States. The company was founded in 1999 and is headquartered in Allentown, Pennsylvania. Shift4 Payments operates under SoftwareInfrastructure classification in the United States and is traded on New York Stock Exchange. It employs 1732 people.

Shift4 Payments Quarterly Enterprise Value

5.69 Billion

Shift4 Payments Valuation Growth Rates

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 Shift4 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.
Quick Ratio7.54
Revenue Growth89.40%
Enterprise Value To Ebitda82.72
Enterprise Value To Revenue2.67

Shift4 Payments Current Valuation Indicators

Valuation refers to the process of determining the present value of Shift4 Payments and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Shift4 we look at many different elements of the entity such as Shift4's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Shift4 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 Shift4 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 Shift4 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 Shift4 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 Shift4 Payments' worth.
Please check Investing Opportunities. Note that the Shift4 Payments information on this page should be used as a complementary analysis to other Shift4 Payments' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

Complementary Tools for Shift4 Stock analysis

When running Shift4 Payments price analysis, check to measure Shift4 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 Shift4 Payments is operating at the current time. Most of Shift4 Payments' value examination focuses on studying past and present price action to predict the probability of Shift4 Payments' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Shift4 Payments' price. Additionally, you may evaluate how the addition of Shift4 Payments to your portfolios can decrease your overall portfolio volatility.
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Is Shift4 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 Shift4 Payments. If investors know Shift4 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 Shift4 Payments listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
3.2 B
Quarterly Revenue Growth YOY
0.68
Return On Assets
8.0E-4
Return On Equity
-0.0749
The market value of Shift4 Payments is measured differently than its book value, which is the value of Shift4 that is recorded on the company's balance sheet. Investors also form their own opinion of Shift4 Payments' value that differs from its market value or its book value, called intrinsic value, which is Shift4 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 Shift4 Payments' market value can be influenced by many factors that don't directly affect Shift4 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 Shift4 Payments' value and its price as these two are different measures arrived at by different means. Investors typically determine Shift4 Payments value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shift4 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.