Fiserv, which provides banks with the back-end "plumbing” that ensures smooth payment processing, had long been a favorite amongst investors. In this resilient, profitable segment, the group operated in an oligopoly with FIS and Jack Henry.

With the acquisition of First Data in 2019, Fiserv diversified into merchant payment services. Alongside its legacy business, this second segment quickly came to account for half of consolidated revenue.

With structural growth and superior profitability - revenue had quintupled since 2010 and profit sextupled - Fiserv commanded a top-tier valuation, with a clearly defined floor at 30x earnings.

A radical shift in investor perception followed a guidance reset and suspicions of wrongdoing weighing on the stewardship of former CEO Frank Bisignano, tapped by the Trump administration to run both Social Security and the IRS.

In a free fall without a parachute, Fiserv's share price has been quartered in a matter of months. Is this reaction excessive?

Possibly. Over the past 15 years, Fiserv has generated $29bn in free cash flow, almost entirely returned to shareholders via buybacks. In parallel, funded by debt, $17bn was invested in acquisitions, mainly the First Data takeover.

Even after the growth-outlook revision, Fiserv should remain able to generate at least $5bn in free cash flow per year. Its current market capitalization thus represents a multiple of only seven times that amount. Including debt, its enterprise value represents 13 times that amount.

The sense of urgency is real and the leadership team has been completely overhauled. It now features a slate of unimpeachable veterans - a former PNC president, a payments head at JPMorgan, and Stripe's former CFO, among others - brought in to put the house in order.

They have made several open-market share purchases for their own accounts. They were followed by various well-known funds. While Fiserv will likely have to settle disputes with clients, it is hard to imagine the tab consuming more than one or two years of profits.

In many respects, the situation is reminiscent of the highly publicized UnitedHealth Group case.