At US$111, Is It Time To Put Equifax Inc. (NYSE:EFX) On Your Watch List? – Simply Wall St News
Today we’re going to take a look at the well-established Equifax Inc. (NYSE:EFX). The company’s stock
led the NYSE gainers with a relatively large price hike in the past couple of weeks.
With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price.
However, could the stock still be trading at a relatively cheap price?
Let’s examine Equifax’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Is Equifax still cheap?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around
0.8% below my intrinsic value, which means if you buy Equifax today, you’d be paying a
price for it.
And if you believe that the stock is really worth
then there isn’t much room for the share price grow beyond what it’s currently trading.
Although, there may be an opportunity to buy in the future. This is because Equifax’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from Equifax?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.
Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations.
Equifax’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder?
It seems like the market has already priced in EFX’s positive outlook,
with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as
the track record of its management team.
Have these factors changed since the last time you looked at the stock? Will you have enough
confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been
keeping an eye on EFX,
now may not be the most
time to buy, given it is trading around its fair value. However, the
is encouraging for the company, which means it’s worth
diving deeper into
other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Equifax. You can find everything you need to know about Equifax in the latest infographic research report. If you are no longer interested in Equifax, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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