Equifax

Methodology

Equifax's credit data and analytics business generates predictable earnings from subscription revenue and mortgage market transaction volumes. The credit bureau oligopoly provides pricing power though mortgage cyclicality creates earnings volatility. Fair value works well when normalizing for mortgage origination cycles and accounting for mid-single-digit secular growth from data monetization.

Methodology

Equifax typically trades at PEG ratios between 1.5-2.5x, reflecting premium valuations for its credit data moat and analytics growth opportunities. Mortgage market cyclicality and data breach remediation costs create periodic valuation pressures. PEG works reasonably well when adjusting for mortgage cycle positioning and focusing on long-term data asset value.

Methodology

Equifax pays a modest dividend yielding around 1%, making PEGY only slightly more attractive than PEG for this data-driven growth story. The company prioritizes technology investments and strategic M&A over dividend increases. Total return focuses primarily on earnings growth from expanding data monetization rather than income generation.