Scavengers On FICO's Woes: Equifax Trades $50 Too High

2025-09-25 17:08:21 ET

Scavengers on Fico's Woes

Equifax ( EFX ) stands to benefit from the regulatory shifts that are hitting Fair Isaac Corporation ( FICO ), which we recently analyzed, revising downward its fair value by 15% versus its actual price. One theme that emerged in my article on FICO and that deserves thorough investigation is how Fair Isaac finds itself now between the anvil and the hammer when we consider its relationship with the credit bureaus. We saw, in fact, that with the new regulatory shift that introduces the VantageScore as a valid alternative to the FICO score, Fair Isaac is pressured by its data suppliers, who have now become its competitors. Yes, Equifax ( EFX ), TransUnion ( TRU ), and Experian ( EXPGY ) are the owners of the VantageScore, and they thus have the advantage of no costs on data supply. This will help them undercut on price the FICO score, potentially leading to market share erosion for the once undisputed monopoly of credit scoring....

Read the full article on Seeking Alpha

For further details see: