Sharewatch: Experian

Shares in Experian have risen 20 per cent in the past six months as the credit checking company has delivered a robust performance in challenging markets. Experian is battling against a sharp decline in the amount of new lending to individuals and businesses, which means less demand for credit checking. The group has, however, managed to maintain its income level – organic revenue grew 1 per cent in the first six months of the year – and has impressed analysts with its ability to increase margins while those of its rivals are coming under pressure. As a result, Experian’s shares are trading at a p/e ratio of around 14.5 times, a significant premium to Equifax, its closest rival, which is on around 12 times.