Equitable

Equitable Holdings Inc is assigned a 5-star quantitative star rating, indicating our belief that this share class offers a compelling opportunity for investors. The stock currently trades at a 34% discount to our quantitative fair value estimate of $77.51 per share; however, caution is warranted due to this estimate's high uncertainty rating.

The company's profitability strengthens our fair value estimate. Highly profitable companies are often more resilient in recessions and are likely to generate stronger future cash flows for shareholders. Reflecting the firm's profitability is its earnings yield of 12.1%, which falls in the top 20% compared with global peers. This suggests that it is generating substantial earnings relative to its share price, which contributes to our view that shares are undervalued.

The firm's valuation metrics are an additional encouraging factor. A company's valuation metrics provide insights into the market's expectations for its future growth and profitability. The firm's enterprise value to revenue ratio of 0.7, a core component of valuation, ranks in the bottom 20% compared with peers globally. The prevailing enterprise value/sales ratio is low relative to the long-term earnings power of the business. This characteristic further promotes our favorable price/fair value ratio.

The company's narrow quantitative moat rating indicates it could outearn its cost of capital and maintain robust margins for 10 years or longer. Its moat is bolstered by its strong financial health, which indicates low near-term bankruptcy risk.