Factset Research Systems Inc
FDSAbove valueExpectations · fairHeld by 4 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-08-31Valuation basis: trailing twelve months to 2026-05-31 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +5.4%
- Net margin
- 25.7%
- ROE
- 27.3%
- FCF margin
- 26.6%
Valuation · value band
Above fair value
Zero-growth floor
$133
Central IV
$234
Optimistic top
$288
Factset Research Systems Inc (FDS): A conservative value band $133–$288 / sh (zero-growth floor to growth-capped optimistic top); central read about $234. Today’s price sits above that band (price $300 as of 2026-08-21).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
Revenue growth 7% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 10.6% · Zero-growth downside $133
Price as of 2026-08-21 · yahoo · DGS10 4.7% @ 2026-08-20.
Method & numbers
Model cautions
- Growth nearly matches the discount rate — the estimate is sensitive to assumptions.
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $145.42 – $288.13 · Greenwald zero-growth $174.11 · zero-growth base $174.11 · reproduction $29.68
Moat Franchise (moat) · terminal value 50% of present value · owner-earnings yield 5% vs 10Y 4.7%.
Graham earnings-power value (normalized NOPAT)$136.92 – $174.11 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-05-31, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 151% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back).
Buffett owner-earnings value$132.90 – $162.43 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-05-31, 2024, 2023, 2022, 2021
v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 151% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% band as a cost-of-equity proxy; no leverage premium applied (net cash or debt within the no-charge range).
Reproduction value = tangible net assets $-1.12B + capitalized R&D $617.80M（FY 2026, 2024, 2023, 2022） = $29.68 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a narrow moat · competitive-advantage period ≈ 10 years.
Growth value not assessable — No positive growth reinvestment in the matured window, so ROIIC cannot be computed.
Window TTM 2026-05-31, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 16% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Owner-earnings DCF: growth g₁ 7% · OE FY TTM 2026-05-31, 2024, 2023, 2022, 2021 · Discount band: 9.19%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-08-20). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.
Valuation basis: trailing twelve months to 2026-05-31 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about 11.6% a year in owner-earnings for the next few years. Revenue actually grew 9.9% a year.
About its own track record.
Roughly, the price needs its historical revenue growth to run about 13 more years to hold up.
SEC 13F · holders
Superinvestors Holding This Security
4 holders · $145.8M combined · this quarter +1 opened / -0 exited
- Value$53.9MWeight (prev→now)0.5% → 0.5% ▼
- Value$52.8MWeight (prev→now)0.7% → 0.7% ▼
- Value$31.1MWeight (prev→now)0.2% → 0.2% ▼
- Value$7.9MWeight (prev→now)New · 0.0%
SEC 13F · notes
Written summary
Written summary
Factset Research Systems Inc (FDS) is held by 4 of the superinvestors tracked on Compounder, with a combined $145.8M in reported 13F value. The largest position belongs to John Rogers, where it makes up 0.5% of the portfolio.
Other notable holders by value include Donald Yacktman (0.7% of its book), Thomas Gayner (0.2% of its book) and Ray Dalio (0.0% of its book).
Over the latest quarter, 1 of the tracked filers opened a new position in FDS, 2 added to existing ones, 0 trimmed, and 0 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Factset Research Systems Inc (FDS) also commonly hold →
- Johnson & JohnsonJNJ4 holders
- Schwab (Charles) CorpSCHW4 holders
- Walt Disney Co/TheDIS4 holders
- Lockheed Martin CorpLMT4 holders
- Alphabet Inc-Cl CGOOG3 holders
- Microsoft CorpMSFT3 holders
FDS's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
Stay Updated
New-quarter 13F moves and valuation updates, to your inbox.