Moody's Corporation

NYSE:MCO Stock Report

Market Cap: US$85.0b

Moody's Valuation

Is MCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MCO ($474.59) is trading above our estimate of fair value ($313.08)

Significantly Below Fair Value: MCO is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MCO?

Key metric: As MCO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MCO. This is calculated by dividing MCO's market cap by their current earnings.
What is MCO's PE Ratio?
PE Ratio42.9x
EarningsUS$2.00b
Market CapUS$84.96b

Price to Earnings Ratio vs Peers

How does MCO's PE Ratio compare to its peers?

The above table shows the PE ratio for MCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.7x
ICE Intercontinental Exchange
36.8x11.4%US$90.7b
CME CME Group
24x3.1%US$82.8b
NDAQ Nasdaq
48x17.3%US$46.1b
MSCI MSCI
37.8x9.6%US$46.8b
MCO Moody's
42.9x9.3%US$85.0b

Price-To-Earnings vs Peers: MCO is expensive based on its Price-To-Earnings Ratio (42.9x) compared to the peer average (36.7x).

Price to Earnings Ratio vs Industry

How does MCO's PE Ratio compare vs other companies in the US Capital Markets Industry?

22 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADX Adams Diversified Equity Fund
4xn/aUS$2.52b
CET Central Securities
4.5xn/aUS$1.32b
GAM General American Investors Company
4.1xn/aUS$1.16b
MUDS Mudrick Capital Acquisition Corporation II
3.4xn/aUS$401.64m
MCO 42.9xIndustry Avg. 23.7xNo. of Companies75PE020406080100+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MCO is expensive based on its Price-To-Earnings Ratio (42.9x) compared to the US Capital Markets industry average (23.7x).

Price to Earnings Ratio vs Fair Ratio

What is MCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.9x
Fair PE Ratio21.7x

Price-To-Earnings vs Fair Ratio: MCO is expensive based on its Price-To-Earnings Ratio (42.9x) compared to the estimated Fair Price-To-Earnings Ratio (21.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MCO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$474.59
US$497.06
+4.7%
9.0%US$570.00US$415.00n/a19
Nov ’25US$456.36
US$495.22
+8.5%
9.7%US$570.00US$395.00n/a19
Oct ’25US$471.40
US$481.08
+2.1%
8.1%US$570.00US$395.00n/a19
Sep ’25US$487.74
US$471.82
-3.3%
8.0%US$530.00US$385.00n/a19
Aug ’25US$460.88
US$465.81
+1.1%
8.8%US$530.00US$385.00n/a18
Jul ’25US$421.49
US$412.63
-2.1%
7.0%US$454.00US$360.00n/a18
Jun ’25US$396.99
US$409.49
+3.1%
6.5%US$450.00US$360.00n/a18
May ’25US$372.89
US$406.25
+8.9%
7.2%US$450.00US$345.00n/a19
Apr ’25US$393.89
US$397.73
+1.0%
7.9%US$450.00US$340.00n/a19
Mar ’25US$382.04
US$397.53
+4.1%
7.9%US$450.00US$340.00n/a19
Feb ’25US$402.54
US$391.42
-2.8%
9.6%US$455.00US$335.00n/a19
Jan ’25US$390.56
US$368.00
-5.8%
9.6%US$455.00US$295.00n/a19
Dec ’24US$371.05
US$360.47
-2.9%
7.7%US$411.00US$310.00n/a19
Nov ’24US$312.88
US$357.05
+14.1%
7.1%US$411.00US$310.00US$456.3619
Oct ’24US$316.17
US$372.58
+17.8%
6.8%US$420.00US$325.00US$471.4019
Sep ’24US$339.32
US$372.79
+9.9%
6.8%US$420.00US$325.00US$487.7419
Aug ’24US$352.36
US$373.15
+5.9%
6.7%US$420.00US$325.00US$460.8820
Jul ’24US$347.72
US$333.70
-4.0%
8.2%US$400.00US$277.00US$421.4920
Jun ’24US$323.67
US$329.05
+1.7%
6.6%US$360.00US$277.00US$396.9919
May ’24US$313.28
US$328.00
+4.7%
7.3%US$360.00US$277.00US$372.8918
Apr ’24US$306.02
US$326.53
+6.7%
7.8%US$360.00US$277.00US$393.8917
Mar ’24US$289.28
US$325.00
+12.3%
8.2%US$360.00US$277.00US$382.0417
Feb ’24US$323.27
US$319.00
-1.3%
8.2%US$356.00US$277.00US$402.5417
Jan ’24US$278.62
US$291.00
+4.4%
5.9%US$330.00US$260.00US$390.5617
Dec ’23US$306.08
US$286.12
-6.5%
5.9%US$315.00US$250.00US$371.0517
Nov ’23US$264.35
US$279.59
+5.8%
7.2%US$315.00US$239.00US$312.8817

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

VEF

SEK 2.2b

A venture capital firm specializing in early venture, emerging growth and growth capital investments.

VEFF.F

SEK 0.20

7D

0%

1Y

n/a

Federal Home Loan Mortgage

US$10.4b

Operates in the secondary mortgage market in the United States.

FMCC

US$2.92

7D

0%

1Y

358.8%

ORIX

JP¥3.8t

Provides diversified financial services in Japan, the United States, Asia, Europe, Australasia, and the Middle East.

IX

JP¥106.82

7D

-0.9%

1Y

17.5%