Equifax stock has fallen about 29% over the past five years, yet the latest Discounted Cash Flow (DCF) estimate suggests the intrinsic value could sit well above where the market is pricing the shares today, while earnings-based multiples look closer to fair.

• Over five years the share price is down about 29%, which means long-term holders have seen material capital pressure even before considering today’s valuation checks.
• Recent revenue growth, the planned acquisition in Mexico and expanded cost reduction plans can support expectations for future cash flows, while ongoing legal and regulatory issues such as the recent settlement may weigh on how much investors are willing to pay for that growth.
• On Simply Wall St’s broader checks Equifax scores 3 out of 6, which points to a mixed picture rather than a clear bargain or clear overvaluation.

The issue now is whether the discount implied by the DCF-style intrinsic value estimate offers enough comfort given the share price record and the mixed valuation score.

Is Equifax Still Cheap on Cash Flow?

The Discounted Cash Flow (DCF) model values Equifax by projecting future free cash flows and discounting them back to today. On this view, the latest twelve month free cash flow of about $1.1b is treated as the base, with analysts expecting growing cash flows over the coming decade.

Those projections feed into an estimated intrinsic value of about $344 per share, which implies the stock is trading at roughly a 49.7% discount to that DCF value. Despite the recent Q2 2026 results and the planned $750m acquisition in Mexico raising questions about growth durability, the market price still sits well below the value supported by the cash flows in this model.

On this cash flow view the Equifax stock currently screens as undervalued.

Our Discounted Cash Flow (DCF) analysis suggests Equifax is undervalued by 49.7%. Track this in your watchlist or portfolio, or discover 55 more high quality undervalued stocks.

Is Equifax Fairly Priced on Earnings?

P/E is a useful cross check for Equifax because it ties the current share price directly to the earnings that support it. Right now Equifax trades on a P/E of about 29.3x, which is slightly above the peer average of 28.0x and well above the wider Professional Services industry at 21.6x. That points to investors paying a premium versus the broader sector, but not dramatically more than closest peers.

The tailored fair P/E ratio for Equifax is 28.3x. This is the multiple you might expect given its size, margins, growth profile and risk factors. The gap between the current 29.3x and this 28.3x fair level is small, so on earnings the stock sits very close to what the model treats as a balanced price.

On the P/E multiple, Equifax appears priced roughly in line with what its earnings profile would justify.

The Equifax Narrative: What Would Justify Today's Price?

Simply Wall St Narratives for Equifax pick up where this valuation puzzle leaves off by spelling out which assumptions on growth, margins and earnings would need to hold for the stock to be worth materially more or less than it is today. Each narrative links a specific view of Equifax's catalysts and risks to a fair value estimate, so you can track over time which storyline seems closest to how the business actually develops. These are available on Simply Wall St's Community page.

If you have a clear, number driven view on whether Equifax's recent acquisition plan in Mexico and expanded cost cuts ultimately add up to a stronger business, consider sharing a Narrative in the Simply Wall St community. It is a chance to add your voice with a transparent thesis on Equifax and see how it holds up as new results and developments come through.

Do you think there's more to the story for Equifax? Head over to our Community to see what others are saying!

The Bottom Line

For Equifax, the Discounted Cash Flow (DCF) work suggests meaningful upside on an intrinsic value basis, while the earnings multiple points to a stock that already trades close to what peers and sector benchmarks imply. That split leaves the recent legal and regulatory issues, along with execution on the Mexico acquisition and cost cuts, as the real swing factors. The key question from here is whether cash flows evolve in line with the optimistic DCF path or whether ongoing business and regulatory risks keep the market reluctant to re rate the stock materially higher.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.