Why We’re Not Concerned Yet About Fiserv, Inc.’s (NYSE:FI) 25% Share Price Plunge
To the annoyance of some shareholders, Fiserv, Inc. (NYSE:FI) shares are down a considerable 25% in the last month, which continues a horrid run for the company. The last month has meant the stock is now only up 4.1% during the last year.
In spite of the heavy fall in price, given close to half the companies in the United States have price-to-earnings ratios (or “P/E’s”) below 17x, you may still consider Fiserv as a stock to avoid entirely with its 27.2x P/E ratio. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
