FactSet's strong recurring revenue growth, high customer retention rates, and increasing product adoption indicate a resilient business model that justifies higher valuations.

"As of May 31, 2026, it was $2.48 billion, 7.1% higher than a year earlier... Most importantly, it retained over 95% of its subscribers... over 90% of the company's top 50 clients used four or more of FactSet's products."

"Its shares trade at 14.4 times that estimate. Except for earlier this year, the multiple hasn't been lower at any other time in the past decade... Yet, its share price in November 2024 was double its current level, even though it converts net income to free cash flow more effectively."