What a PayPal buyout might mean for Fiserv
Why? Just take a look at the numbers.
PayPal and Fiserv aren't direct competitors, with PayPal being a more consumer-facing financial services company (B2C) facilitating payments among peers, while Fiserv operates more on the back end, running the plumbing of financial transactions and processing payments among businesses (B2B). That said, the industry is the same, and the valuations are similar -- and Fiserv looks like an even more attractive takeover target than PayPal.
At today's share price, PayPal stock costs only 8.9 times trailing (and forward) earnings. Fiserv is cheaper at just 8.4x trailing earnings, and a mere 6.2x forward earnings. According to analysts polled by S&P Global Market Intelligence, both companies have similar projected growth rates of 5.8% over the next five years.
Long story short, if Stripe and Advent think PayPal's a buy at 8.9x earnings, there's every reason to believe they, or someone else, may soon reach the same conclusion about Fiserv -- and offer to buy it, too.
https://finance.yahoo.com/markets/stocks/articles/why-fiserv-stock-just-popped-153853078.html