Shift4 Payments (FOUR) Could Be 28% Undervalued On Tether Payments Push

Shift4 Payments (FOUR) recently drew fresh attention after partnering with Lydian to let merchants accept Tether (USDT) while still settling in local currency, broadening its crypto offering alongside expectations for event driven payment volumes.

See our latest analysis for Shift4 Payments.

Despite the crypto partnership and expectations around event driven volumes, Shift4 Payments’ share price has been volatile, with a 1 day share price return of 14.35% and a year to date share price return down 29.45%, while the 1 year total shareholder return is down 54.15%. This points to recent momentum building off a weaker long term base.

If this kind of payment and crypto story interests you, it can be useful to see what else is moving in related areas and scan through 19 cryptocurrency and blockchain stocks

With Shift4 Payments trading at a discount to analyst price targets but only a small gap to one measure of intrinsic value, the key question is clear: is this recent weakness a chance to buy, or is the market already pricing in future growth?

Most Popular Narrative: 27.7% Undervalued

At a last close of $44.22 versus a narrative fair value of $61.15, Shift4 Payments is framed as meaningfully undervalued, with that gap hinging on sustained expansion and margin improvement.

The cross-sell opportunity across the combined customer bases of newly acquired companies (e.g., bringing Shift4’s payment products into Global Blue’s luxury retail clients, or introducing Global Blue’s DCC product to Shift4 hotels/restaurants) creates a substantial embedded pipeline for incremental revenue and sustained organic growth over multiple years.

Read the complete narrative.

Want to see what sits behind that growth pipeline claim? The narrative leans heavily on rising revenue, higher margins, and a future earnings multiple that assumes meaningful execution. The detailed assumptions might surprise you.

Result: Fair Value of $61.15 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, the Shift4 Payments story also hinges on successful integration of recent acquisitions and on managing higher leverage, both of which could weaken the otherwise positive revenue outlook.

Find out about the key risks to this Shift4 Payments narrative.

Another View: What Shift4 Payments’ P/E Ratio Is Telling You

While the most popular narrative presents Shift4 Payments as 27.7% undervalued against a fair value of $61.15, the current P/E of 56.6x paints a different picture. It sits well above the US Diversified Financial industry at 14.6x, the peer average at 41.3x, and a fair ratio of 23.4x, which points to valuation risk if expectations are not met.

For investors, that gap means a lot of future growth and execution is already embedded in the price. It is therefore worth asking whether this premium still feels comfortable given the company’s leverage, earnings volatility, and mixed share price history.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Mixed signals around Shift4 Payments can feel confusing, so move quickly to review both sides of the story and weigh the 2 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Shift4 Payments?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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