Morgan Stanley Return On Equity vs. Current Valuation
| MS Stock | USD 133.66 1.03 0.76% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.09175266 | Current Value 0.17 | Quarterly Volatility 0.04630253 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.72 | 0.85 |
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| Net Profit Margin | 0.12 | 0.1695 |
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| Operating Profit Margin | 0.48 | 0.4394 |
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| Pretax Profit Margin | 0.18 | 0.2203 |
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| Return On Assets | 0.0096 | 0.0076 |
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| Return On Equity | 0.17 | 0.0918 |
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For Morgan Stanley profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Morgan Stanley to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Morgan Stanley utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Morgan Stanley's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Morgan Stanley over time as well as its relative position and ranking within its peers.
Morgan |
Morgan Stanley's Revenue Breakdown by Earning Segment
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Is Investment Banking & Brokerage space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Morgan Stanley. If investors know Morgan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Morgan Stanley listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.362 | Dividend Share 3.55 | Earnings Share 6.59 | Revenue Per Share 36.489 | Quarterly Revenue Growth 0.165 |
The market value of Morgan Stanley is measured differently than its book value, which is the value of Morgan that is recorded on the company's balance sheet. Investors also form their own opinion of Morgan Stanley's value that differs from its market value or its book value, called intrinsic value, which is Morgan Stanley's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Morgan Stanley's market value can be influenced by many factors that don't directly affect Morgan Stanley's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Morgan Stanley's value and its price as these two are different measures arrived at by different means. Investors typically determine if Morgan Stanley is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Morgan Stanley's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Morgan Stanley Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Morgan Stanley's current stock value. Our valuation model uses many indicators to compare Morgan Stanley value to that of its competitors to determine the firm's financial worth. Morgan Stanley is rated below average in return on equity category among its peers. It is rated top company in current valuation category among its peers reporting about 687,761,873,791 of Current Valuation per Return On Equity. At this time, Morgan Stanley's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Morgan Stanley by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Morgan Current Valuation vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Morgan Stanley |
| = | 0.11 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Morgan Stanley |
| = | 76.2 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Morgan Current Valuation vs Competition
Morgan Stanley is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is now estimated at about 55.75 Billion. Morgan Stanley totals roughly 76.2 Billion in current valuation claiming about 137% of equities under Financials industry.
Morgan Stanley Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Morgan Stanley, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Morgan Stanley will eventually generate negative long term returns. The profitability progress is the general direction of Morgan Stanley's change in net profit over the period of time. It can combine multiple indicators of Morgan Stanley, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -6.4 B | -6.1 B | |
| Operating Income | 23.6 B | 24.7 B | |
| Income Before Tax | 11.8 B | 6.1 B | |
| Total Other Income Expense Net | -11.7 B | -12.3 B | |
| Net Income | 9.1 B | 4.9 B | |
| Income Tax Expense | 2.6 B | 1.6 B | |
| Net Income Applicable To Common Shares | 12.1 B | 12.7 B | |
| Net Income From Continuing Ops | 9.2 B | 8.2 B | |
| Net Interest Income | 8.2 B | 6.5 B | |
| Interest Income | 50.3 B | 52.8 B | |
| Change To Netincome | 1.9 B | 1.8 B | |
| Net Income Per Share | 5.58 | 5.86 | |
| Income Quality | (3.69) | (3.51) | |
| Net Income Per E B T | 0.77 | 0.55 |
Morgan Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Morgan Stanley. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Morgan Stanley position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Morgan Stanley's important profitability drivers and their relationship over time.
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Additional Tools for Morgan Stock Analysis
When running Morgan Stanley's price analysis, check to measure Morgan Stanley's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Morgan Stanley is operating at the current time. Most of Morgan Stanley's value examination focuses on studying past and present price action to predict the probability of Morgan Stanley's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Morgan Stanley's price. Additionally, you may evaluate how the addition of Morgan Stanley to your portfolios can decrease your overall portfolio volatility.