Equifax (EFX): Reassessing Valuation After Recent Share Price Dip

Equifax (EFX) stock is drawing attention as investors take a closer look at its valuation following recent shifts in market sentiment. Shares have pulled back over the past month, raising questions about opportunities ahead for the company.

See our latest analysis for Equifax.

Equifax has faced some renewed pressure in recent weeks, with a 1-month share price return of -10.1% weighing on sentiment. Even so, the longer-term picture remains balanced, as its 3-year total shareholder return of 6.4% shows steady, if unspectacular, progress. This recent dip could reflect shifting growth expectations or evolving risk perceptions in the market.

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With shares trading around 26% below their intrinsic value estimate and almost 30% under average analyst price targets, investors are left to weigh whether recent declines point to a compelling entry or if the market already reflects future growth expectations.

Most Popular Narrative: 23% Undervalued

Compared to Equifax’s last closing price of $206.65, the most widely followed narrative sets a higher fair value estimate at $268.30. This narrative highlights how transformational changes in Equifax’s product suite and global footprint shape its future potential.

Accelerating customer adoption of new multi-data product solutions (e.g., TWN indicator, Single Data Fabric, EFX.AI) and continued high NPI (New Product Introduction) rates are expanding Equifax's value proposition, positioning the company to capture incremental market share and drive sustained organic revenue growth above historical levels.

Read the complete narrative.

Curious what's fueling this analyst conviction? One ambitious factor in these projections stands out: a bold growth rate for both earnings and margins, with the narrative hinting at a market-defying profit multiple. Want to see how aggressive these targets are? The full narrative lays all the assumptions bare.

Result: Fair Value of $268.30 (UNDERVALUED)

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

However, ongoing legal costs and unpredictable state budgets could easily derail these bullish projections. This makes Equifax’s future less certain than some expect.

Find out about the key risks to this Equifax narrative.

Another View: Does the Market Agree?

While intrinsic value models point to Equifax being significantly undervalued, market multiples tell a less upbeat story. Its price-to-earnings ratio stands at 38.4x, which is much higher than the industry average of 23.7x and also above the fair ratio of 32.2x. This gap suggests some valuation risk if investor sentiment changes suddenly. Could the market be less convinced of near-term earnings strength than the models?

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

Build Your Own Equifax Narrative

If you want to dig deeper or chart your own perspective, you can easily build a personal view based on the latest figures and insights. All of this can be done in just a few 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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