Moodys Valuation
| MCO Stock | USD 480.66 3.59 0.75% |
At this time, the firm appears to be overvalued. Moodys secures a last-minute Real Value of $421.57 per share. The latest price of the firm is $480.66. Our model forecasts the value of Moodys from analyzing the firm fundamentals such as Return On Equity of 0.54, profit margin of 0.29 %, and Current Valuation of 90.72 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Moodys' valuation include:
Price Book 22.0257 | Enterprise Value 90.7 B | Enterprise Value Ebitda 26.8397 | Price Sales 12.56 | Forward PE 35.8423 |
Overvalued
Today
Please note that Moodys' price fluctuation is very steady at this time. Calculation of the real value of Moodys is based on 3 months time horizon. Increasing Moodys' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Moodys is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Moodys Stock. However, Moodys' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 480.66 | Real 421.57 | Target 367.0 | Hype 477.92 | Naive 483.68 |
The intrinsic value of Moodys' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Moodys' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Moodys helps investors to forecast how Moodys stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Moodys more accurately as focusing exclusively on Moodys' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Moodys' intrinsic value based on its ongoing forecasts of Moodys' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Moodys' closest peers.
Moodys Cash |
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Moodys Valuation Trend
Knowing Moodys' actual value is paramount for traders when making sound investment determinations. Using both Moodys' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Moodys Revenue by Product
Moodys Total Value Analysis
Moodys is now forecasted to have company total value of 90.72 B with market capitalization of 86.61 B, debt of 7.42 B, and cash on hands of 1.77 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Moodys fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
90.72 B | 86.61 B | 7.42 B | 1.77 B |
Moodys Investor Information
About 14.0% of the company outstanding shares are owned by corporate insiders. The company has Price/Earnings To Growth (PEG) ratio of 2.48. Moodys recorded earning per share (EPS) of 10.94. The entity last dividend was issued on the 22nd of November 2024. The firm had 2:1 split on the 19th of May 2005. Based on the key indicators related to Moodys' liquidity, profitability, solvency, and operating efficiency, Moodys is not in a good financial situation at this time. It has a very high odds of going through financial crisis in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.46 | 0.3612 |
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| Total Cash From Operating Activities | 2.3 B | 2.2 B |
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| Operating Income | 1.3 B | 2.1 B |
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Moodys Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Moodys has an asset utilization ratio of 40.46 percent. This suggests that the Company is making $0.4 for each dollar of assets. An increasing asset utilization means that Moodys is more efficient with each dollar of assets it utilizes for everyday operations.Moodys Ownership Allocation
Moodys maintains a total of 181.23 Million outstanding shares. The majority of Moodys outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Moodys to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Moodys. Please pay attention to any change in the institutional holdings of Moodys as this could imply that something significant has changed or is about to change at the company. Please note that on June 14, 2024, Senator Tommy Tuberville of US Senate acquired under $15k worth of Moodys's common stock.Moodys Profitability Analysis
The company reported the last year's revenue of 5.92 B. Total Income to common stockholders was 1.61 B with profit before taxes, overhead, and interest of 3.85 B.Moodys Past Distributions to stockholders
About Moodys Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Moodys. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Moodys based exclusively on its fundamental and basic technical indicators. By analyzing Moodys's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Moodys's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Moodys. We calculate exposure to Moodys's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Moodys's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.2 B | 2.3 B | |
| Pretax Profit Margin | 0.33 | 0.45 | |
| Operating Profit Margin | 0.36 | 0.46 | |
| Net Profit Margin | 0.27 | 0.21 | |
| Gross Profit Margin | 0.71 | 0.58 |
A single share of Moodys represents a small ownership stake in the entity. As a stockholder of Moodys, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Moodys Dividends Analysis For Valuation
At this time, Moodys' Dividends Paid is very stable compared to the past year. As of the 22nd of November 2024, Dividend Yield is likely to grow to 0.01, while Dividend Payout Ratio is likely to drop 0.21. . At this time, Moodys' Retained Earnings are very stable compared to the past year. As of the 22nd of November 2024, Price Earnings Ratio is likely to grow to 46.75, while Retained Earnings Total Equity is likely to drop about 8.2 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 564 M | 592.2 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.35 | 0.21 | |
| Dividend Paid And Capex Coverage Ratio | 2.58 | 4.71 |
There are various types of dividends Moodys can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Moodys shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Moodys directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Moodys pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Moodys by the value of the dividends paid out.
Moodys Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 184 M | |
| Quarterly Earnings Growth Y O Y | 0.389 | |
| Forward Price Earnings | 35.8423 |
Moodys Current Valuation Indicators
Moodys' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Moodys' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Moodys, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Moodys' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Moodys' worth.When determining whether Moodys offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Moodys' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Moodys Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Moodys Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Moodys. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. To learn how to invest in Moodys Stock, please use our How to Invest in Moodys guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Is Financial Exchanges & Data 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 Moodys. If investors know Moodys 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 Moodys 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 0.389 | Dividend Share 3.32 | Earnings Share 10.94 | Revenue Per Share 37.828 | Quarterly Revenue Growth 0.232 |
The market value of Moodys is measured differently than its book value, which is the value of Moodys that is recorded on the company's balance sheet. Investors also form their own opinion of Moodys' value that differs from its market value or its book value, called intrinsic value, which is Moodys' 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 Moodys' market value can be influenced by many factors that don't directly affect Moodys' 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 Moodys' value and its price as these two are different measures arrived at by different means. Investors typically determine if Moodys is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Moodys' 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.