Shift 4 Offers Attractive Valuation and Growth Potential

15 days ago

Daniel Pronk

"Shift 4 is a one-stop shop that provides both software and hardware for payment processing, particularly in the hospitality and entertainment industries. With its recent $2.5 billion Global Blue acquisition, the company is positioning itself to capture a larger share of the global payments market. Their metrics are impressive with total transaction volume up 26% and revenue growing by nearly 29% year-over-year. If Shift 4 can hit its 2027 free cash flow guidance of $1 billion, the stock could compound by 42% annually, reaching an estimated fair value of $134 per share. I believe that, despite current debt concerns, Shift 4 is massively undervalued today."

The commentary on Shift 4 emphasizes its integrated software and payments platform, backed by a significant acquisition that expands its international footprint. With strong year-over-year growth and a compelling DCF suggesting 42% annual compound growth to a fair value of $134, the speaker finds Shift 4 undervalued despite its current high debt levels.

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