Is Broadridge Financial Solutions, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Broadridge Financial Solutions, Inc. moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 45, which is relatively high compared to peers like Block, Inc. with a P/E of 12.44 and Cognizant Technology Solutions Corp. at 13.98. Additionally, the EV to EBITDA ratio is 24.40, while its peer average is significantly lower, indicating a premium valuation.
In terms of returns, Broadridge has underperformed against the S&P 500 over the 1-week, 1-month, and 3-year periods, with a 1-year return of 4.92% compared to the S&P 500's 14.08%. This suggests that while the company is currently fairly valued, its recent performance may not justify a higher valuation compared to its peers.