Equifax Inc. (EFX)
Valuation Overview•Is Equifax Inc. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Moderate quality score of 57/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
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Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
EFX demonstrates strong business quality with robust profitability and healthy margins. This is paired with a moderately leveraged but stable balance sheet.
The company demonstrates solid revenue growth (5.8% 3Y CAGR) however, earnings have severely contracted over the same period. The company maintains healthy operational efficiency with a 18.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.7B | +6.9% | +5.8% | +8.0% | +8.6% | |
| EBITDA | $551.7M | — | +3.9% | — | — | |
| Net Income | $211.7M | +9.3% | -1.7% | — | +4.4% | |
| EPS (Diluted) | $1.79 | +9.9% | -2.0% | +4.6% | +4.1% | |
| Free Cash Flow | $436.9M | +39.5% | +104.5% | +16.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 55.2% | 55.9% | 57.0% | 58.6% |
| Operating Margin | 18.8% | 18.0% | 19.6% | 16.9% |
| Net Margin | 11.3% | 10.6% | 12.1% | 10.4% |
| FCF Margin | 16.7% | 14.3% | 12.6% | 12.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q4'26Latest | $2.20 | $2.26 | +2.7% | ||
| Q3'26 | $2.20 | $2.25 | +2.3% | ||
| Q2'26 | $1.69 | $1.86 | +10.1% | ||
| Q1'26 | $2.06 | $2.09 | +1.5% | ||
| Q4'25 | $1.94 | $2.04 | +5.2% | ||
| Q3'25 | $1.93 | $2.00 | +3.6% | ||
| Q2'25 | $1.41 | $1.53 | +8.5% | ||
| Q1'25 | $2.12 | $2.12 | +0.0% |
Total return is -6.1% (1Y), lagging the benchmark by -15.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -10.6% | -18.3% | — |
| 1Y | -6.1% | -15.8% | +1.1% |
| 3YCAGR | +2.6% | -15.7% | +3.1% |
| 5YCAGR | -7.1% | -16.1% | +3.0% |
| 10YCAGR | +5.0% | -7.9% | — |
The S&P 500 is at 29.9x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Equifax Inc. (EFX) valuation, health, and returns.
Equifax Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. trading near fair value (DCF: $212.98)
Equifax Inc. has multiple valuation anchors: DCF Intrinsic Value: $212.98 | Peer Relative Fair Value: $188.42 | Wall Street Analyst Target: $197.71 (implying +4.3% upside). A convergence of these signals offers higher conviction.
Equifax Inc. displays fair financial health with a composite quality score of 57/100, supported by a Altman Z-Score of 2.9 (grey zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 8.5%.
Equifax Inc. pays a 1.0% dividend yield, covered by a 35% payout ratio with 1 years of growth, supplemented by a 4.2% buyback yield.
Equifax Inc.'s current growth trajectory is Stable. The company achieved +6.9% 1Y revenue growth and +9.9% 1Y EPS growth, compared to its 3Y revenue CAGR of +5.8%.
Wall Street consensus is Buy based on 36 analysts, beating EPS expectations in 83% of recent quarters with a 7-quarter streak. The consensus price target represents a +4.3% change from current levels.
Investment risks for Equifax Inc. include: -39.5% 1-year max drawdown. Volatility risk is characterized by a beta of 0.40x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.