Moody's Corporation

NYSE:MCO Stock Report

Market Cap: US$83.7b

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 ($466.35) is trading above our estimate of fair value ($321.37)

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 Ratio42.2x
EarningsUS$2.00b
Market CapUS$83.74b

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 Average38x
ICE Intercontinental Exchange
35.5x11.4%US$85.1b
CME CME Group
25.1x3.1%US$85.3b
NDAQ Nasdaq
46.6x17.6%US$44.5b
COIN Coinbase Global
44.7x-18.3%US$68.6b
MCO Moody's
42.2x9.4%US$83.7b

Price-To-Earnings vs Peers: MCO is expensive based on its Price-To-Earnings Ratio (42.2x) compared to the peer average (38x).

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
3.6xn/aUS$2.24b
CET Central Securities
4.4xn/aUS$1.29b
GAM General American Investors Company
4.2xn/aUS$1.18b
MUDS Mudrick Capital Acquisition Corporation II
3.4xn/aUS$401.64m
MCO 42.2xIndustry Avg. 23.6xNo. of Companies73PE020406080100+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MCO is expensive based on its Price-To-Earnings Ratio (42.2x) compared to the US Capital Markets industry average (23.6x).

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 Ratio42.2x
Fair PE Ratio21.7x

Price-To-Earnings vs Fair Ratio: MCO is expensive based on its Price-To-Earnings Ratio (42.2x) 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$466.35
US$503.31
+7.9%
9.4%US$570.00US$415.00n/a20
Dec ’25US$499.98
US$497.85
-0.4%
9.2%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$310.00US$499.9819
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 05:15
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Moody's Corporation is covered by 40 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John EadeArgus Research Company
Jeffrey MeulerBaird
Ishan MajumdarBaptista Research