Broadridge Financial Solutions Inc (BR) is undervalued and International Business Machines Corp (IBM) is fairly valued.
Against our estimates of intrinsic value, BR trades at the wider discount: a margin of safety of +67%, against -5% for IBM.
Values as of the 22 Sept 2026 close.
A 8.0x revenue multiple, adjusted for growth and margin, values the shares at $499.58; the price of $163.02 is 67% below that value.
Leak Score 95/100 on 10 of 12 signals
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $220.67; the price of $231.38 is 5% above that value, and 78% of that value comes from beyond year five.
Leak Score 65/100 on 9 of 12 signals
| Metric | BR | IBM |
|---|---|---|
| Verdict | Undervalued | Fairly valued |
| Price | $163.02 | $231.38 |
| Intrinsic value | $499.58 | $220.67 |
| Margin of safety | +67% | -5% |
| Leak Score | 95/100 (10/12) | 65/100 (9/12) |
| Market cap | $18.6B | $218.0B |
| Revenue growth, 5 years | 7.8% | 4.1% |
| Operating margin | 17.6% | 20.9% |
| Net margin | 15.0% | 15.5% |
| Return on equity | 40.9% | 34.5% |
| Debt to equity | 1.24 | 1.89 |
| P/E | 16.9x | 20.5x |
| Forward P/E | 14.1x | 17.6x |
| P/B | 6.5x | 6.3x |
| Dividend yield | 2.6% | 2.9% |