Equifax (EFX): Assessing Valuation After a 20% Pullback Despite Ongoing Earnings Growth

Equifax (EFX) has quietly slipped about 20% over the past year, even as revenue and net income kept growing. That disconnect between the share price and fundamentals is what makes the stock interesting now.

See our latest analysis for Equifax.

More recently, that pullback has deepened, with the 90 day share price return at around negative 15 percent and the 1 year total shareholder return near negative 20 percent, suggesting momentum has been fading even as earnings grow.

If Equifax’s slide has you rethinking your watchlist, this could be a good moment to explore fast growing stocks with high insider ownership as a potential next wave of compelling ideas.

With earnings still expanding and shares trading at a meaningful discount to analyst targets and estimated intrinsic value, the key question now is whether Equifax is genuinely undervalued, or if the market is simply pricing in all that future growth.

Most Popular Narrative: 21% Undervalued

Compared to Equifax’s last close at $211.51, the most followed narrative sees fair value materially higher, implying investors are underestimating future earnings power.

Global cloud migration and investments in proprietary technology platforms are now largely complete, enabling margin expansion through operating leverage, efficiency gains, and scalable innovation, which is expected to increase EBITDA and net margins over time.

Read the complete narrative.

Want to see how this margin story turns into upside potential? The narrative leans on faster growth, higher profitability, and a richer future earnings multiple.

Result: Fair Value of $267.80 (UNDERVALUED)

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

However, persistent litigation costs and intensifying competition from alternative scoring models could pressure margins and slow the earnings growth that this upside case assumes.

Find out about the key risks to this Equifax narrative.

Another Lens on Valuation

On earnings based valuation, Equifax looks anything but cheap. Its P E ratio sits around 39 times, versus 24.9 times for the US Professional Services industry and a fair ratio of 33.6 times. This suggests meaningful downside risk if sentiment or growth expectations cool.

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

Build Your Own Equifax Narrative

If you see things differently or want to dive into the numbers yourself, you can build a custom view in just minutes: Do it your way.

A great starting point for your Equifax research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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