Global Payments: Significantly Undervalued But Affected By The Persian Gulf Conflict

Global Payments remains significantly undervalued, with a DCF-based fair value estimate of $126 versus a current price of near $69. With some direct and indirect headwinds from the Persian Gulf conflict, I model 3% revenue growth for 2026, below management's 5% guidance. Capital returns are prioritized post-Worldpay acquisition, with an impressive $7.5B target for 2025–2027 and deleveraging to 3x net leverage by end-2027.