Moody's Corporation (MCO) Valuation — DCF, Graham & Comparables

Moody's Corporation (MCO) — Price $465.27 Financial ServicesFinancial - Data & Stock Exchanges — NYSE

Latest reported results:

Valuation dashboard for Moody's Corporation (MCO) with P/E 29.13, P/B 26.72, EV/EBITDA 21.74 and dividend yield 0.87%. DCF, Graham Number and Earnings Power Value models plus sector comparison against other Financial Services companies.

Moody's Corporation operates as a global leader in risk assessment, divided into two main segments: Moody's Investors Service and Moody's Analytics. Moody's Investors Service is dedicated to issuing credit ratings and providing detailed assessments for a diverse range of debt obligations and the entities that issue them. This encompasses corporate, financial institution, governmental, and structured finance securities across approximately 140 nations.

Analysis Summary

Moody's Corporation reported revenue of $7.72B in the most recent fiscal year, growing at a 5-year CAGR of 7.5%. Net income reached $2.46B, with a 6.7% 5-year CAGR.

Trailing-twelve-month margins: gross margin 71.9%, operating margin 45.1%, net margin 34.3%.

At the current price of $465.27, MCO trades at a P/E of 29.13 and an ROE of 79.69%. Market capitalisation stands at $80.6B, placing it among large-cap names.

Balance sheet quality for MCO: current ratio of 1.7. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio29.13
Price / Book26.72
EV / EBITDA21.74
Dividend Yield0.87%

Valuation Models

DCF Fair Value$171.36
vs Current Price-63.2%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
MCOMoody's Corporation$80.6B29.1326.7279.7%
CMECME Group Inc.$98.0B23.043.7115.5%
COINCoinbase Global, Inc.$46.1B3.47-6.9%
MFGMizuho Financial Group, Inc.$133.2B15.461.8312.3%
BMOBank of Montreal$121.8B19.681.9610.6%
ICEIntercontinental Exchange, Inc.$88.1B21.732.9513.8%
BNSThe Bank of Nova Scotia$113.7B16.821.7811.4%
BAMBrookfield Asset Management Ltd.$72.1B25.611.5415.6%

Price

Price$465.27
Market Cap$80.6B
ExchangeNYSE
CountryUS

Profitability

Return on Equity79.69%
Return on Invested Capital23.88%
Return on Assets19.05%
Gross Margin71.94%
Operating Margin45.10%
Net Margin34.25%

Related companies: BAM · BMO · BNS · CME · COIN · ICE · MFG

Explore sector: Financial Services · Financial - Data & Stock Exchanges

More sections of MCO: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

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