Equifax's Wide Moat Intact After Data Breach
We are reducing our fair value estimate, however.
Equifax (EFX) announced a hacking incident that could affect 143 million U.S. consumers as well as consumers in Canada and the United Kingdom. While data breaches are increasingly more common, the scope of this one is unprecedented.
We have decreased our fair value estimate as we incorporate the potential impact of the data breach, which we think will include a substantial fine, one-time resolution costs, and longer-term costs to improve security. However, we think the wide economic moat that surrounds the business is intact and will limit long-term damage.
Brett Horn does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.