Using the industry peer median P/E multiple (trailing + forward), Broadridge Financial Solutions, Inc. (BR) has a fair value of $123.54 based on 6 comparable companies in the Information Technology Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Broadridge Financial Solutions, Inc.BR | 19,164 | 22.8x | 17.0x |
| Jabil Inc.JBL | 28,529 | 45.1x | 31.8x |
| Teledyne Technologies IncorporatedTDY | 28,423 | 32.5x | 31.6x |
| Leidos Holdings, Inc.LDOS | 19,925 | 14.2x | 15.6x |
| HP Inc.HPQ | 17,841 | 7.3x | 6.2x |
| CDW CorporationCDW | 15,830 | 15.0x | 12.3x |
| Gartner, Inc.IT | 11,238 | 16.2x | 13.1x |
| Industry Median | 15.6x | 14.3x | |
| (*) Profit after tax | 840 | 1,124 | |
| Equity Value | 13,098 | 16,132 | |
| (/) Outstanding shares | 118 | 118 | |
| Fair Price | $111 | $136 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.