Is Corpay (CPAY) Below Fair Value After The FTC Settlement?

Corpay has delivered strong multi year share price gains, and the question now is whether that valuation is properly supported by the returns the business earns on the capital it puts to work. Over the past 5 years the stock has returned 48.9%, which puts real weight on whether the underlying return on capital justifies that kind of compounding. The proposed US$100 million Federal Trade Commission settlement may influence how Corpay prices and structures fees, which can affect future...