Is Broadridge Financial Solutions, Inc. overvalued or undervalued?

Oct 19 2025 12:02 PM IST
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As of October 17, 2025, Broadridge Financial Solutions, Inc. is considered fairly valued despite a high P/E ratio of 45 compared to peers, with strong operational efficiency reflected in a 35.41% ROE, but it has underperformed the S&P 500 over the past year.
As of 17 October 2025, the valuation grade for Broadridge Financial Solutions, Inc. has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. The P/E ratio stands at 45, which is higher than peers like Block, Inc. at 12.44 and Cognizant Technology Solutions Corp. at 13.98, indicating a premium valuation. Additionally, the EV to EBITDA ratio is 24.40, while the PEG ratio is 2.67, suggesting that the stock may be overvalued relative to its growth prospects.

In comparison to its peers, Broadridge's valuation metrics indicate it is on the higher end, with a fair valuation compared to CDW Corp. at a P/E of 20.21. Despite this, the company's strong ROE of 35.41% and ROCE of 21.70% reflect solid operational efficiency. Over the past year, Broadridge has returned 4.92%, which lags behind the S&P 500's return of 14.08%, further supporting the notion that the stock may not be capturing its fair value in the current market.
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