Is Broadridge Financial Solutions, Inc. overvalued or undervalued?

As of 26 June 2025, the valuation grade for Broadridge Financial Solutions, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued based on its current metrics, including a P/E ratio of 45, a Price to Book Value of 16.02, and an EV to EBITDA of 24.40. In comparison, peers such as Block, Inc. and Cognizant Technology Solutions Corp. have significantly lower P/E ratios of 12.44 and 13.98, respectively, suggesting that Broadridge may be trading at a premium relative to its industry.
Despite a year-to-date return of 7.28%, which lags behind the S&P 500's 12.22%, Broadridge's longer-term performance shows a 48.24% return over three years compared to the S&P's 70.41%. This underperformance, coupled with its high valuation ratios, reinforces the conclusion that Broadridge Financial Solutions, Inc. is currently overvalued.