Broadridge Financial Solutions, Inc. (BR) DCF Valuation
TGM's two-stage DCF values Broadridge Financial Solutions, Inc. (BR) between $97.14 and $193.58 depending on assumptions, with a base case of $135.84. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (8.6%) reflects its beta.
What would today's price require?
$137.60 is justified only if free cash flow grows about +9.0% a year (fading to 2.5% long-run) at a 8.6% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 5.7%/yr | 9.6% | $97.14 |
| Base case | 8.7%/yr | 8.6% | $135.84 |
| Optimistic | 11.7%/yr | 7.6% | $193.58 |
| Analyst DCF (FMP) | independent reference — different model | $229.78 | |
Current Price
$137.60
Market-Implied Growth
+9.0%/yr
vs +19.3% 5Y actual
Model Scenario Range
$97.14 – $193.58
model output — not a price target
BR DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for BR (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $845.6M · 0.12B shares · net debt $2.7B
Estimated Fair Value
$174.22
+26.6% vs $137.60
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 8.7%/yr FCF growth and 10-year horizon fixed. Green = above today's $137.60; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.6% | $235 | $255 | $280 | $313 | $355 |
| 7.6% | $189 | $202 | $217 | $235 | $258 |
| 8.6% | $156 | $164 | $174 | $186 | $200 |
| 9.6% | $131 | $137 | $144 | $152 | $161 |
| 10.6% | $112 | $116 | $121 | $127 | $133 |
About Broadridge Financial Solutions, Inc.
Broadridge Financial Solutions, Inc. delivers specialized technology and communication services designed for the financial sector. Its Investor Communication Solutions division is responsible for processing and disseminating proxy materials for equity securities and mutual funds, streamlining associated voting procedures. Furthermore, it circulates vital regulatory disclosures, details on class actions and corporate reorganizations, and comprehensive tax reporting services. Notable offerings include ProxyEdge, an electronic proxy delivery and voting system. The company also provides data-centric solutions and a holistic platform for content creation, management, and multi-channel delivery of regulatory, marketing, and transactional content, alongside mutual fund transaction processing and advanced data analysis tools. This segment offers tailored services for public companies and investment funds, encompassing support for SEC filings and capital market transactions, registrar functions, stock transfer, and meticulous record-keeping. It also develops integrated customer communication strategies, all powered by its Broadridge Communications Cloud platform for creating and managing client engagement. The Global Technology and Operations segment streamlines the entire transaction workflow, from initial order to final settlement, across a wide array of asset classes, such as equities, mutual funds, fixed income instruments, foreign exchange, and exchange-traded derivatives. Its services encompass areas like order capture and execution, trade confirmation, margin management, cash flow, clearance and settlement, reference data, reconciliations, securities financing, collateral management, asset servicing, regulatory compliance, portfolio accounting, and custody. This segment also provides outsourced business operations, sophisticated technological tools covering portfolio management, compliance adherence, fee billing, and overarching operational support, as well as specialized solutions for capital markets and wealth management firms. Established in 1962, the company maintains its headquarters in Lake Success, New York.
- Sector
- Technology
- Industry
- Information Technology Services
- CEO
- Timothy C. Gokey