FactSet Research provides integrated financial information and analytical applications to investment community in the United States, Europe, and the Asia Pacific. The company was founded in 1978 and is based in Norwalk, Connecticut.
FDS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Factset Research Systems Inc. To summarize, we found that Factset Research Systems Inc ranked in the 30th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for FDS, they are:
Interest coverage, a measure of earnings relative to interest payments, is 30.77; that's higher than 86.42% of US stocks in the Financial Services sector that have positive free cash flow.
The business' balance sheet suggests that 7% of the company's capital is sourced from debt; this is greater than only 19.85% of the free cash flow producing stocks we're observing.
FDS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 48.79% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WETF, CME, EZPW, MCO, and FCFS can be thought of as valuation peers to FDS, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.