FactSet (FDS) Valuation Check After Strong Earnings, AI Data Launch and Expanded Share Buyback

FactSet Research Systems (FDS) has suddenly jumped back onto investors radar after a busy December that combined stronger than expected quarterly results, a major AI data launch, and a sharply larger buyback.

See our latest analysis for FactSet Research Systems.

Those catalysts have finally given the stock some positive momentum in the short term, with a recent 1 day share price return of 5.5%. However, that sits against a much weaker backdrop, including a roughly 39.6% 1 year total shareholder return decline and negative 3 and 5 year total shareholder returns. This suggests investors are still repricing FactSet’s growth prospects and risk profile despite the AI push and enlarged buyback.

If this kind of re rating story has your attention, it might be worth scanning for other financial and analytics names riding similar themes through high growth tech and AI stocks.

With shares down sharply over one year yet still trading above some bearish targets, investors face a tricky call: is FactSet now undervalued after its AI push and bigger buyback, or is the market already pricing in future growth?

Most Popular Narrative: 13.4% Undervalued

Against a last close of $288.54, the most followed narrative pegs FactSet’s fair value meaningfully higher, framing a measured upside case built on compounding fundamentals.

The analysts have a consensus price target of $428.375 for FactSet Research Systems based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $500.0, and the most bearish reporting a price target of just $355.0.

Read the complete narrative.

Curious how steady expansion in revenues, rising profit margins and a richer future earnings multiple come together to justify this valuation reset? The full narrative reveals the exact growth path and profitability assumptions that underpin this upside case, plus the kind of premium multiple usually reserved for category leaders.

Result: Fair Value of $333.19 (UNDERVALUED)

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

However, slowing price driven ASV growth and persistently higher technology spending could challenge the bullish margin expansion and premium multiple that are built into this upside case.

Find out about the key risks to this FactSet Research Systems narrative.

Build Your Own FactSet Research Systems Narrative

If you see the story differently, or would rather dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.

A great starting point for your FactSet Research Systems 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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