FactSet Research Systems Inc. (FDS)
Valuation Overview•Is FactSet Research Systems Inc. Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
High-quality fundamentals with a strong composite quality score of 78/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
FDS exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. This is paired with a moderately leveraged but stable balance sheet.
The company maintains stable top-line performance paired with robust earnings compounding (14.9% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 31.2% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $611.0M | +5.4% | — | — | +8.7% | |
| EBITDA | $185.0M | — | +15.7% | — | — | |
| Net Income | $133.1M | +11.2% | +14.6% | — | +9.5% | |
| EPS (Diluted) | $3.59 | +11.8% | +14.9% | +10.0% | +10.5% | |
| Free Cash Flow | $185.7M | +0.5% | +8.2% | +7.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 51.9% | 53.4% | 52.7% | 53.2% |
| Operating Margin | 31.2% | 31.4% | 30.0% | 29.7% |
| Net Margin | 24.5% | 24.2% | 23.8% | 24.0% |
| FCF Margin | 28.4% | 27.5% | 28.0% | 26.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | $4.38 | $4.46 | +1.8% | ||
| Q4'25 | $4.36 | $4.51 | +3.4% | ||
| Q3'25 | $4.13 | $4.05 | -1.9% | ||
| Q2'25 | $4.30 | $4.27 | -0.7% | ||
| Q1'25 | $4.17 | $4.28 | +2.6% | ||
| Q4'24 | $4.25 | $4.37 | +2.8% | ||
| Q3'24 | $3.62 | $3.74 | +3.3% | ||
| Q2'24 | $3.90 | $4.37 | +12.1% |
Total return is -46.9% (1Y), lagging the benchmark by -71.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -21.5% | -30.8% | — |
| 1Y | -46.9% | -71.9% | +1.0% |
| 3YCAGR | -17.8% | -36.5% | +3.0% |
| 5YCAGR | -5.8% | -17.9% | +6.0% |
| 10YCAGR | +4.9% | -8.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about FactSet Research Systems Inc. (FDS) valuation, health, and returns.
FactSet Research Systems Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +71.9% upside to DCF intrinsic value of $380.34)
FactSet Research Systems Inc. has multiple valuation anchors: DCF Intrinsic Value: $380.34 | Peer Relative Fair Value: $442.31 | Wall Street Analyst Target: $262.11 (implying +18.4% upside). A convergence of these signals offers higher conviction.
FactSet Research Systems Inc. displays good financial health with a composite quality score of 78/100, supported by a Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 15.5%.
FactSet Research Systems Inc. pays a 1.9% dividend yield, covered by a 27% payout ratio with 27 years of growth, supplemented by a 3.7% buyback yield.
FactSet Research Systems Inc.'s current growth trajectory is Decelerating. The company achieved +5.4% 1Y revenue growth and +11.8% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Hold based on 28 analysts, beating EPS expectations in 75% of recent quarters with a 2-quarter streak. The consensus price target represents a +18.4% change from current levels.
Investment risks for FactSet Research Systems Inc. include: -57.7% 1-year max drawdown. Volatility risk is characterized by a beta of 0.20x.
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.