FactSet

Methodology

FactSet's financial data and analytics subscription business generates highly predictable earnings from recurring revenue with minimal customer churn. The sticky enterprise contracts and high switching costs provide exceptional visibility. Fair value calculations work reliably when accounting for high-single-digit earnings growth from new subscriptions, wallet share expansion, and pricing power.

Methodology

FactSet typically trades at PEG ratios between 2.5-4.0x, reflecting premium valuations for its mission-critical research platform, high retention rates, and consistent execution. The company's integrated data and analytics create strong competitive moats. PEG appears expensive but reflects business quality and reliable double-digit earnings growth from content and capability expansion.

Methodology

FactSet pays a modest dividend yielding around 1%, making PEGY only slightly more attractive than PEG for this growth-oriented data company. Management prioritizes reinvestment in content acquisition and technology over dividend increases. Total return focuses primarily on earnings compounding through market share gains in financial analytics rather than income generation.