First Read: Credit & Decision Making Software "10T Data Release to Fuel..."

Research evidence excerpt

First Read: Credit & Decision Making Software "10T Data Release to Fuel..."

Valuation Method and Risk Statement

Valuation methodology in the sector entails blended comp set as well as 2yr forward price

target derived from applying a multiple to 2028E EBITDA and rolling price target forward at

cost of equity to obtain 12-month price target. Investing in the technology sector entails

above-average risk given low sales visibility, rapid pace of innovation and technological

change, intense competition, frequent M&A, and low barriers to entry in many markets.

EFX: Our price target is based on a multiple on FY28E EBITDA rolled forward by Cost of Equity.

Risks: higher-than-expected interest rates, waning consumer strength, technological

disruption.

FICO PT is based on multiple on FY-Sep-28E EBITDA rolled forward by Cost of Equity. Risks: 1)

increased regulation, 2) slower-than-expected Software platform adoption, 3) higher-than-

expected infrastructure and IT spend, and 4) competition on Scores side.

Transunion PT is based on multiple on EBITDA rolled forward by Cost of Equity. Risks to the

downside: significant competition across information services providers, breaches of security

and fallout from reputational damages, potential loss of access to data sources, increased

regulatory oversight, and an inability to maintain and improve technological systems. In

addition, macro headwinds driving an unfavorable mortgage consumer credit environment

could negatively impact demand in key end markets/verticals. Risks to the upside include

higher than expected pricing power, faster than expected ability to maintain and improve

technological systems, generating faster than expected scale and capital returns.

First Read: Credit & Decision Making Software 1 July 2026 ab 2