Broadridge Financial Solutions, Inc.

NYSE:BR Stock Report

Market Cap: US$26.6b

Broadridge Financial Solutions Valuation

Is BR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BR ($227.78) is trading below our estimate of fair value ($337.77)

Significantly Below Fair Value: BR is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BR?

Key metric: As BR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BR. This is calculated by dividing BR's market cap by their current earnings.
What is BR's PE Ratio?
PE Ratio38.8x
EarningsUS$687.00m
Market CapUS$26.60b

Price to Earnings Ratio vs Peers

How does BR's PE Ratio compare to its peers?

The above table shows the PE ratio for BR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23x
SSNC SS&C Technologies Holdings
25.7x14.3%US$18.4b
G Genpact
11.9x-0.3%US$8.0b
EXLS ExlService Holdings
38.3x15.3%US$7.3b
MMS Maximus
16.2x0.9%US$4.9b
BR Broadridge Financial Solutions
38.8x11.4%US$26.6b

Price-To-Earnings vs Peers: BR is expensive based on its Price-To-Earnings Ratio (38.8x) compared to the peer average (23x).

Price to Earnings Ratio vs Industry

How does BR's PE Ratio compare vs other companies in the US Professional Services Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CNDT Conduent
1.4x-101.1%US$647.55m
CIH China Index Holdings
3.5xn/aUS$87.15m
ALJJ ALJ Regional Holdings
0.7xn/aUS$70.26m
STCN Steel Connect
3.1xn/aUS$61.41m
BR 38.8xIndustry Avg. 24.5xNo. of Companies16PE01632486480+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BR is expensive based on its Price-To-Earnings Ratio (38.8x) compared to the US Professional Services industry average (25.1x).

Price to Earnings Ratio vs Fair Ratio

What is BR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio38.8x
Fair PE Ratio30.8x

Price-To-Earnings vs Fair Ratio: BR is expensive based on its Price-To-Earnings Ratio (38.8x) compared to the estimated Fair Price-To-Earnings Ratio (30.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst BR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$227.78
US$220.26
-3.3%
7.0%US$246.00US$205.00n/a7
Nov ’25US$210.21
US$215.55
+2.5%
8.0%US$246.00US$195.00n/a7
Oct ’25US$214.69
US$215.55
+0.4%
8.0%US$246.00US$195.00n/a7
Sep ’25US$212.86
US$215.55
+1.3%
8.0%US$246.00US$195.00n/a7
Aug ’25US$214.95
US$211.48
-1.6%
7.0%US$239.00US$190.00n/a8
Jul ’25US$196.56
US$208.98
+6.3%
8.2%US$239.00US$185.00n/a8
Jun ’25US$200.77
US$207.60
+3.4%
8.5%US$239.00US$185.00n/a8
May ’25US$193.43
US$208.64
+7.9%
8.3%US$239.00US$185.00n/a9
Apr ’25US$203.23
US$208.64
+2.7%
8.3%US$239.00US$185.00n/a9
Mar ’25US$203.74
US$208.09
+2.1%
8.6%US$239.00US$185.00n/a9
Feb ’25US$201.63
US$203.53
+0.9%
9.3%US$239.00US$180.00n/a9
Jan ’25US$205.75
US$196.53
-4.5%
7.3%US$230.00US$180.00n/a9
Dec ’24US$195.40
US$191.88
-1.8%
8.9%US$226.00US$164.00n/a8
Nov ’24US$170.53
US$188.50
+10.5%
8.8%US$226.00US$164.00US$210.218
Oct ’24US$179.05
US$181.00
+1.1%
12.0%US$226.00US$150.00US$214.699
Sep ’24US$187.74
US$177.89
-5.2%
9.5%US$203.00US$150.00US$212.869
Aug ’24US$168.22
US$169.56
+0.8%
9.9%US$200.00US$140.00US$214.959
Jul ’24US$165.63
US$169.56
+2.4%
9.9%US$200.00US$140.00US$196.569
Jun ’24US$149.00
US$166.78
+11.9%
7.9%US$185.00US$140.00US$200.779
May ’24US$144.18
US$164.11
+13.8%
8.6%US$185.00US$135.00US$193.439
Apr ’24US$146.57
US$164.57
+12.3%
9.5%US$185.00US$135.00US$203.237
Mar ’24US$139.99
US$164.57
+17.6%
9.5%US$185.00US$135.00US$203.747
Feb ’24US$153.38
US$163.86
+6.8%
9.2%US$185.00US$135.00US$201.637
Jan ’24US$134.13
US$166.06
+23.8%
8.3%US$185.00US$137.00US$205.758
Dec ’23US$149.86
US$166.93
+11.4%
8.7%US$185.00US$137.00US$195.407
Nov ’23US$149.60
US$175.17
+17.1%
11.2%US$204.00US$145.00US$170.536

Analyst Forecast: Target price is lower than the current share price.

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