| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 99.92 | -6 |
| Intrinsic value (DCF) | 73.55 | -31 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.47 | -100 |
GlobalData Plc (LSE: DATA) is a leading provider of business intelligence, proprietary data, and analytics across multiple industries, including aerospace, healthcare, technology, and retail. Headquartered in London, the company delivers actionable insights through its subscription-based platforms, helping clients make informed strategic decisions. Operating in Europe, North America, and Asia Pacific, GlobalData serves a diverse clientele ranging from corporations to public sector entities. Formerly known as Progressive Digital Media Group Plc, the company rebranded in 2016 to reflect its global data-driven approach. With a market cap of approximately £1.43 billion, GlobalData has established itself as a key player in the business intelligence sector, leveraging AI and machine learning to enhance its analytics capabilities. Its broad industry coverage and proprietary datasets provide a competitive edge in the fast-growing data analytics market.
GlobalData Plc presents a compelling investment case due to its strong position in the business intelligence sector, recurring revenue model, and diversified industry exposure. The company’s low beta (0.432) suggests relative stability compared to broader markets, while its healthy operating cash flow (£45.5M) and modest debt levels (£67.5M) indicate financial resilience. However, investors should note the competitive nature of the data analytics industry and potential margin pressures from increasing R&D and AI integration costs. The dividend yield (~0.8% based on a £3 per share payout) is modest, making the stock more suitable for growth-oriented investors. Expansion in North America and Asia Pacific could drive future revenue growth, but execution risks remain.
GlobalData Plc competes in the business intelligence and analytics market by offering industry-specific datasets and insights, differentiating itself through vertical specialization. Its competitive advantage lies in its proprietary data collection methods and AI-driven analytics, which enhance accuracy and predictive capabilities. The company’s broad sector coverage (e.g., healthcare, energy, retail) reduces dependency on any single industry, mitigating cyclical risks. However, it faces stiff competition from larger players like Bloomberg and S&P Global, which have deeper financial resources and broader product suites. GlobalData’s niche focus allows for deeper industry expertise but may limit scalability compared to diversified competitors. Its subscription-based model ensures recurring revenue, though customer retention in a crowded market remains a challenge. The company’s ability to integrate AI and machine learning into its platforms will be critical in maintaining its competitive edge against tech-savvy rivals.