Equifax (EFX), mcap=$25.6bn, price $209 vs $171

Pitch:
– Consumer credit reporting agency at 20x ’23 EPS.
– High-moat, high-quality business with reasonable organic growth.
– Significant barriers to entry from direct receipt of employment records.
– Competitors are unable to match network flywheel effects of $EFX.
– Pressures from lower mortgage issuance volumes and a weakening economy are already reflected in the price.

Valuation:
– Expected to generate $1.5bn in FCF by 2025.
– At 20x PE multiple, that’s $245/share.

Exp. gain: +47% to $245/share by 2025.

Full $EFX write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/EQUIFAX_INC/5603089803

Published on: August 1, 2022  •  Published by:
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