Global Payments

Methodology

Global Payments' merchant acquiring and payment processing business generates predictable earnings from transaction volumes and recurring software revenue. The company's scale in merchant services provides competitive advantages. This calculation works reasonably well given transaction-based revenue visibility, though competitive intensity in payment processing and integration execution from past M&A create some earnings uncertainty.

Methodology

Global Payments typically shows moderate PEG ratios reflecting steady growth from payment volume increases and software penetration in merchant services. The company's technology investments and vertical market focus support consistent execution. Compare to other payment processors to assess whether Global Payments' merchant service positioning and software strategy justify its valuation relative to faster-growing fintech competitors.

Methodology

Global Payments pays a minimal dividend as management prioritizes growth investments, technology development, and strategic M&A in payment capabilities. The company generates strong free cash flow but deploys most toward reinvestment and occasional share buybacks. Total return depends primarily on earnings growth from payment volumes and expanding software-enabled merchant services rather than income generation.