Core Viewpoint - Automatic Data Processing, Inc. (ADP) has experienced a significant decline in share price, approximately 28.3% since mid-2025, attributed to slowing employment growth and concerns regarding AI disruptions despite recent earnings surpassing estimates and a positive growth trajectory [1]. Group 1: Company Performance - ADP's share price has fallen substantially due to external factors impacting employment growth and market sentiment regarding AI [1]. - The company has recently beaten earnings estimates, indicating a potential for growth despite the share price decline [1]. Group 2: Market Context - The decline in ADP's share price reflects broader market fears about the impact of AI on employment and business operations [1].

Market Performance - The CAC 40 index reached an all-time high of 8556.89, driven by easing concerns over AI disruptions and a renewed risk appetite [1] - Currently, the CAC 40 is trading at 8,540.57, reflecting a 0.25 percent increase from the previous close of 8,519.21, with a yearly gain of 6.1 percent [2] - Only 16 out of the 40 stocks in the index are trading below the flatline, indicating a strong overall market performance [2] Stock Movements - Bureau Veritas experienced the highest gain, surging 3.4 percent, while Societe Generale and BNP Paribas both increased by over 2 percent [3] - Other notable gainers include Credit Agricole, Dassault Systemes, and Engie, each adding more than 1.5 percent [3] - Pernod Ricard led the losses with a decline of 3.3 percent, while LVMH and L'Oreal both shed more than 1 percent [3] Bond Market - France's 10-year bond yields have slightly increased by 0.03 percent to 3.270 percent, with trading ranges between 3.276 percent and 3.266 percent [4] Currency Market - The U.S. Dollar Index is at 97.90, gaining 0.06 percent, while the EUR/USD pair has increased by 0.07 percent to 1.1781 [5] - The EUR/GBP pair is trading at 0.8719, down 0.08 percent, and the EUR/JPY pair has risen by 0.64 percent to 184.68 [5]

Group 1: Vulcan Value Partners Overview - Vulcan Value Partners released its fourth-quarter 2025 investor letter, reporting positive results across all strategies despite overvalued markets [1] - The Large Cap Composite (Net) returned -1.5% in Q4 and 7.9% YTD, while the Small Cap Composite (Net) gained 3.2% in Q4 and 9.5% YTD [1] - The Focus Composite (Net) and Focus Plus Composite (Net) both returned 0.1% in Q4, with YTD returns of 7.1% and 6.2% respectively, and the All-Cap Composite (Net) returned 1.3% in Q4 and 10.7% YTD [1] - The firm emphasized prioritizing safety and long-term gains over short-term performance, drawing parallels to the late 1990s dot-com bubble [1] Group 2: CoStar Group, Inc. Analysis - CoStar Group, Inc. was highlighted as a notable detractor within Vulcan's Focus Plus Strategy, with shares trading between $57.01 and $97.43 over the past 52 weeks [2] - As of January 26, 2026, CoStar Group's stock closed at $65.81, with a one-month return of -3.02% and a three-month loss of 15.88% [2] - CoStar Group has a market capitalization of $27.89 billion [2] Group 3: CoStar Group's Business Performance - CoStar Group is recognized as a premier information services provider for the commercial and residential real estate industries, with a subscription-based revenue model [3] - The company has experienced solid double-digit revenue growth and consistent margin expansion in its core businesses, although enterprise-level margins have contracted due to significant investments in Homes.com [3] - The firm views the success of Homes.com as optional and has attributed no value to this asset, noting that the results from residential efforts have not met long-term expectations [3] - CoStar's non-core residential efforts are expected to continue being loss-making for many years, prompting ongoing evaluation of the company's new information [3]

Group 1 - Vulcan Value Partners reported positive results across all its investment strategies for Q4 2025, with the Large Cap Composite returning -1.5% in Q4 and 7.9% YTD, and the All-Cap Composite returning 1.3% in Q4 and 10.7% YTD [1] - The firm emphasized a focus on safety and long-term gains, improving price-to-value ratios despite overvalued markets, drawing parallels to the late 1990s dot-com bubble and current AI disruptions [1] - The firm plans to maintain its investment discipline in light of market conditions, indicating a cautious approach to potential overvaluation risks [1] Group 2 - Vulcan Value Partners exited its holdings in CBRE Group, Inc. (NYSE:CBRE) during Q4 2025, which is a leading commercial real estate services and investment company with a market capitalization of $50.68 billion [2] - CBRE Group, Inc. shares traded between $108.45 and $173.05 over the past 52 weeks, closing at $170.31 on January 26, 2026, with a one-month return of 4.29% and a three-month gain of 6.82% [2] - The investment in CBRE was deemed excellent due to its market-leading position and stable earnings from recurring business segments, despite challenges in property sales [3]

Group 1: Investment Performance - Vulcan Value Partners reported positive results across all strategies in Q4 2025, with the Large Cap Composite returning -1.5% in Q4 and 7.9% YTD, and the Small Cap Composite gaining 3.2% in Q4 and 9.5% YTD [1] - The Focus Composite and Focus Plus Composite both returned 0.1% in Q4, with YTD returns of 7.1% and 6.2% respectively, while the All-Cap Composite returned 1.3% in Q4 and 10.7% YTD [1] - The firm improved its price-to-value ratios despite overvalued markets, emphasizing safety and long-term gains over short-term performance [1] Group 2: TransUnion Overview - TransUnion (NYSE:TRU) is one of the three leading credit bureaus in the U.S., collecting consumer borrowing and payment data from over 95,000 financial institutions [3] - The company has diversified its offerings beyond credit reports and scores, providing tools for consumers to manage personal finances and shop for financial products [3] - TransUnion operates in an oligopoly with competitors like Experian and Equifax, and has historically grown organically in the high single digits with a 30% operating margin [3] Group 3: TransUnion Stock Performance - TransUnion's stock traded between $66.38 and $101.19 over the past 52 weeks, closing at $85.80 on January 22, 2026 [2] - The one-month return for TransUnion was -1.77%, while it gained 0.23% over the last three months [2] - The market capitalization of TransUnion is $16.714 billion [2]