FactSet Research Systems Inc.

New York Stock Exchange
Back to all articles
Somewhat Bullish +50

Is FactSet Research Systems (FDS) Now Attractive After Share Price Slides 57% In One Year

AI-generated analysis

📉 FactSet Research Systems (FDS) stock price has declined significantly, dropping 56.8% over the last year and 29.8% year-to-date.

💰 The current share price is approximately US$199.86, leading investors to debate whether this represents a bargain or continued weakness.

📊 Based on an Excess Returns model using analyst estimates for book value and return on equity, FactSet's intrinsic value is estimated at $379.59 per share.

🔍 This valuation analysis suggests the stock is currently trading at a 47.3% discount to its calculated fair value.

📉 The company trades at a Price-to-Earnings ratio of 12.39x, which is notably lower than both the Capital Markets industry average (41.16x) and peer group average (25.77x).

⚖️ Simply Wall St's proprietary Fair Ratio estimate for FactSet is 14.33x, further indicating the current P/E suggests the stock is trading below a typical level.

📈 Analysts provide a weighted Stable EPS of $20.23 and an Average Return on Equity of 29.47%, contributing to the undervaluation thesis.

💬 Community sentiment on valuation varies, with Fair Value estimates ranging from a low of US$200.00 to a high of US$430.00 based on different investment narratives.

🤖 Some investors view the price slide as an opportunity driven by AI partnerships and product breadth, while others worry about competition and margin pressure.

⚠️ The article notes that the price decline has sparked debate over whether FactSet is priced for lower expectations or simply out of favor compared to peers.

📝 This analysis is based on historical data and forecasts provided by Simply Wall St and does not constitute financial advice to buy or sell the stock.

Bullish Signals
  • On Simply Wall St's valuation checklist, FactSet scores 5 out of 6 for being undervalued.
  • Using the Excess Returns framework, the model estimates an intrinsic value of about $379.59 per share against a current price of roughly $199.86.
  • This analysis suggests the stock is 47.3% undervalued based on weighted future estimates from 4 analysts.
  • FactSet Research Systems currently trades on a P/E of 12.39x, which sits significantly below the Capital Markets industry average of 41.16x and the peer group average of 25.77x.
  • The stock is trading below Simply Wall St's proprietary Fair Ratio estimate of 14.33x, indicating it may be priced below a more typical level for the company.
  • On the Community page, the highest analyst Fair Value on FactSet currently sits at US$430.00, suggesting significant upside potential from current levels.
Risk Factors
  • The stock has suffered significant declines across multiple timeframes, dropping 10.8% over the past week, 10.6% over the past month, 29.8% year to date, and a steep 56.8% over the last year.
  • FactSet is trading at a P/E ratio of 12.39x, which is substantially below its Capital Markets industry average of 41.16x and its peer group average of 25.77x, signaling potential market disfavor or valuation uncertainty.
  • The high divergence between the maximum Fair Value estimate of US$430.00 and the minimum estimate of US$200.00 in investor narratives highlights conflicting views on the stock's fundamental trajectory and risk profile.
  • Recent coverage indicates a disconnect between the share price and business fundamentals, with sentiment resetting while investors remain divided on whether this represents a true bargain or a warning sign.
Full Analysis
FactSet Research Systems (FDS) has experienced a significant decline in its share price, dropping approximately 57% over the past year and further declining about 10.8% in the last week alone. At a current price of roughly $199.86 per share, the stock is trading well below historical multiples compared to its Capital Markets industry peers, which average a P/E ratio of 41.16x versus FactSet's current 12.39x. The analysis highlights that despite this sharp decline, the company scores highly on specific valuation metrics provided by Simply Wall St. Using an Excess Returns model that focuses on equity and earnings rather than just cash flows, the estimated intrinsic value for FactSet is calculated at approximately $379.59 per share. This suggests the stock is currently undervalued by roughly 47.3% based on the gap between its book value of $58.11 and stable future book value estimates from analysts. The model utilizes a weighted future Return on Equity estimate of 29.47% against a cost of equity of $5.65 to derive these figures. Further valuation checks reinforce this undervaluation thesis by comparing FactSet's P/E ratio against the publication's proprietary Fair Ratio estimate of 14.33x, indicating the stock trades at a significant discount to its expected fair multiple. The article notes that while some narrative focuses on AI partnerships and product breadth, other concerns revolve around competition and margin pressure, with community estimates for fair value ranging from $200.00 to $430.00. Ultimately, the piece concludes that the stock appears attractive if an investor believes the fundamentals have not been permanently compromised by the recent price slide. Disclaimer: This analysis is based on historical data and analyst forecasts only and does not constitute financial advice. The publication has no position in the mentioned stock.