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Equifax’s New Income Qualify Tool Might Change The Case For Investing In Equifax (EFX)

Simply Wall St · 1d ago
  • Earlier this month, Equifax launched Income Qualify, a tool that uses verified income and employment data from The Work Number to help mortgage lenders assess borrowers earlier in the prequalification and pre-approval process.
  • By pairing Equifax credit files with upfront income verification and offering lower-priced VantageScore mortgage scores, the company is pushing deeper into lenders’ workflow and cost decisions.
  • We’ll now examine how earlier access to verified income data for mortgage lenders could influence Equifax’s existing investment narrative and growth outlook.

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Equifax Investment Narrative Recap

To own Equifax, you generally need to believe that its data and analytics platform, especially The Work Number, can deepen integration into key lending and government workflows while absorbing legal, regulatory and macro shocks. The Income Qualify launch reinforces this data-led thesis by pulling Equifax further into the mortgage decision process, but it does not materially change the nearer term swing factors, which still look most influenced by litigation costs and mortgage and hiring volumes.

The most connected recent announcement is Equifax’s move to offer VantageScore 4.0 mortgage scores at more than 50% below FICO 2026 pricing, with a two year US$4.50 VantageScore commitment and a free VantageScore bundled with each FICO score. Alongside Income Qualify, this puts price and product pressure directly into lenders’ workflows, tying the company’s short term catalysts more tightly to how successfully it can compete on both data richness and pricing while protecting margins.

Yet investors should be aware that rising competition in credit scoring and verification could compress pricing and margins at the very moment when...

Read the full narrative on Equifax (it's free!)

Equifax’s narrative projects $7.8 billion revenue and $1.3 billion earnings by 2028. This requires 9.9% yearly revenue growth and an earnings increase of about $660 million from $639.7 million today.

Uncover how Equifax's forecasts yield a $267.25 fair value, a 21% upside to its current price.

Exploring Other Perspectives

EFX 1-Year Stock Price Chart
EFX 1-Year Stock Price Chart

Six fair value estimates from the Simply Wall St Community span roughly US$256.57 to US$546.12, showing how far apart individual views can be. You can set those against the catalyst of deeper lender workflow integration through products like Income Qualify, which could influence how Equifax converts its data assets into future earnings power.

Explore 6 other fair value estimates on Equifax - why the stock might be worth over 2x more than the current price!

Build Your Own Equifax Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.