FactSet and Robert Half: 2025 Valuation Analysis for Informed Investment Decisions

In the ever-evolving landscape of 2025, investors seeking undervalued opportunities must balance quantitative metrics with qualitative insights. FactSet Research Systems (FDS) and Robert Half (RHI) emerge as compelling candidates for due diligence, each presenting distinct valuation profiles. This analysis explores their financial health, industry positioning, and valuation metrics to guide investors in making informed decisions.

FactSet Research Systems (FDS): A Mixed Valuation Signal

FactSet, a leader in financial data and analytics, reported Q3 2025 GAAP revenues of $585.5 million, a 5.9% year-over-year increase, with organic Annual Subscription Value (ASV) rising 4.5% to $2.3 billion [1]. Despite this growth, its GAAP diluted EPS of $3.87 fell 5.4% YoY, reflecting margin pressures from higher technology expenses and bonus normalization [1].

Valuation metrics paint a nuanced picture. FDS trades at a trailing P/E of 26.5x, below its 3-year average and the peer average of 33.2x [2]. However, this ratio exceeds its estimated fair value of 14.6x, suggesting overvaluation [2]. A DCF model estimates intrinsic value at $304.73, yet the stock trades at $371.93, implying an 18% overvaluation [3]. Conversely, analyst price targets average $436.13, indicating a potential 14.4% undervaluation [2]. This divergence underscores the importance of reconciling short-term operational costs with long-term growth potential, particularly as FactSet transitions under new CEO Sanoke Viswanathan [1].

Robert Half (RHI): A Strong Case for Undervaluation

Robert Half, a professional services firm, reported TTM revenue of $5.56 billion in 2025, with a market cap of $3.72 billion—down 41% YoY [4]. Its trailing P/E of 21x is significantly below the industry average of 26.2x, and its forward P/E of 21.54 further reinforces its affordability [5]. A DCF model estimates fair value between $51.42 and $59.60, far exceeding its current price of $37.21, signaling a 28–38% undervaluation [5]. Analysts project a 12-month price target of $49.80, a 33.44% upside [5].

RHI’s operating margins (0.11%) and profit margins (3.20%) highlight operational challenges, but its diversified segments—Contract Talent Solutions, Permanent Placement, and Protiviti—position it to capitalize on AI and compliance-driven hiring trends [4]. The company’s low P/B ratio of 2.78 and EV/EBITDA of 16.1x further support its valuation appeal [5].

Investment Education: Key Takeaways

1. FDS requires scrutiny of its margin normalization and technology investments. While its revenue growth is robust, investors must weigh near-term costs against long-term data-as-a-service potential.
2. RHI offers a compelling risk-reward profile. Its undervaluation, coupled with a resilient business model in talent services, makes it a candidate for value investors.
3. Due diligence should include sensitivity analyses for both stocks, particularly for FDS’s DCF assumptions and RHI’s margin expansion potential.

Conclusion

FactSet and Robert Half exemplify the diversity of valuation signals in 2025. FDS’s mixed metrics demand a granular assessment of operational efficiency, while RHI’s consistent undervaluation indicators present a clear opportunity for patient investors. By integrating financial metrics, industry trends, and valuation models, investors can navigate these stocks with greater confidence.

Source:
[1] FactSet Reports Results for Third Quarter 2025 [https://investor.factset.com/news-releases/news-release-details/factset-reports-results-third-quarter-2025]
[2] FactSet Research Systems (NYSE:FDS) Stock Valuation [https://simplywall.st/stocks/us/diversified-financials/nyse-fds/factset-research-systems/valuation]
[3] FDS DCF Valuation - Factset Research Systems Inc [https://www.alphaspread.com/security/nyse/fds/dcf-valuation]
[4] Robert Half Inc. (RHI) Valuation Measures & Financial Statistics [https://finance.yahoo.com/quote/RHI/key-statistics/]
[5] Robert Half (NYSE:RHI) Stock Valuation, Peer Comparison [https://simplywall.st/stocks/us/commercial-services/nyse-rhi/robert-half/valuation]