RELX: The Risk Segment Makes This Buy Less Risky

LA Capital 73 Followers Follow Summary Despite consistent EPS compounding and reliable growth, RELX's valuation has derated significantly, trading near 50% of its all-time high P/E. Perceived disruption to the legal and STM segments has turned into opportunities, and consistent growth has been maintained. The high-margin Risk segment dominates digital identity screening and fraud prevention, protected by a self-compounding, 13-petabyte data moat. A conservative DCF model yields a base case target with 37% upside, which reinforces RELX as a GARP-style investment opportunity. Sandwish/iStock via Getty Images The beginning of the AI era has seen many clear winners that have boomed over the last few years. On the other side, the losers are not so clear-cut. Software has been the biggest victim, especially SaaS, but many software companies are making a comeback This article was written by LA Capital 73 Followers Follow I am the author and principal analyst for L and A Capital, which provides investment research on equities and ETFs from a PhD-educated engineer with over 20 years of technical research experience, more than 30 peer-reviewed papers in top-tier academic journals, and several invited lectures at international research institutes. My analysis treats businesses like complex systems in order to identify high-conviction growth and value opportunities suitable for long-term investment. I focus on fiscal health and quality by assessing profitability and cash flow metrics to identify efficient and durable companies. My core research domains include engineering, software architecture, supply-chain logistics and resource exploitation, where my approach provides fundamental leverage. I employ Discounted Cash Flow analysis for valuations, apply Piotroski F-Scores to systematically evaluate accounting strength, and reverse-engineer allocations in factor-based ETFs to shed light on a company’s profile. For analyzing ETFs, I use my own systematic quantitative framework based on multi-dimensional, cross-sectional Z-Scores to identify ETFs that outperform their peers. I also formulate portfolio strategies using Python-based optimization supported by fundamental insights derived from underlying ETF holdings. Using my background as a university lecturer and a former Editor-in-Chief, I aim to offer objective, evidence-based analysis with a pragmatic commentary and a lucid, actionable narrative. I am open to research mandates, joint ventures and institutional collaborations. Analyst’s Disclosure: I/we have a beneficial long position in the shares of RELX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.