Is Global Payments, Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for Global Payments, Inc. has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 11, an EV to EBITDA of 7.65, and a Price to Book Value of 0.84, which indicate a reasonable valuation relative to its earnings and asset base.
In comparison to peers, Global Payments has a P/E ratio of 10.42, which is lower than Visa, Inc. at 33.34 and PayPal Holdings, Inc. at 16.85, suggesting it is more attractively priced than these competitors. However, it is worth noting that Mastercard, Inc. is significantly more expensive with a P/E of 58.16. Additionally, Global Payments' ROE stands at 7.99%, which is competitive but reflects the challenges it faces in generating returns compared to its peers. The company's stock has underperformed against the S&P 500 over various time frames, particularly with a year-to-date decline of 31.87%, reinforcing the notion that it is currently fairly valued.