We’ve recently updated our valuation analysis.

Morgan Stanley Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.2x
GS Goldman Sachs Group
11.4x8.0%US$123.2b
SCHW Charles Schwab
21x16.2%US$139.4b
IBKR Interactive Brokers Group
21x22.5%US$33.0b
RJF Raymond James Financial
15.5x4.7%US$24.2b
MS Morgan Stanley
15.4x9.4%US$162.2b

Price-To-Earnings vs Peers: MS is good value based on its Price-To-Earnings Ratio (15.4x) compared to the peer average (17.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.6%
n/an/an/a

Price-To-Earnings vs Industry: MS is good value based on its Price-To-Earnings Ratio (15.4x) compared to the US Capital Markets industry average (28.1x)


Price to Earnings Ratio vs Fair Ratio

What is MS'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.

MS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.4x
Fair PE Ratio14.9x

Price-To-Earnings vs Fair Ratio: MS is expensive based on its Price-To-Earnings Ratio (15.4x) compared to the estimated Fair Price-To-Earnings Ratio (14.9x).


Share Price vs Fair Value

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

Below Fair Value: MS ($96.86) is trading below our estimate of fair value ($98.46)

Significantly Below Fair Value: MS is trading below fair value, but not by a significant amount.


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 MS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$96.86
US$101.59
+4.9%
9.8%US$125.00US$84.00n/a23
Jan ’24US$85.02
US$94.13
+10.7%
8.4%US$115.00US$79.22n/a24
Dec ’23US$93.00
US$93.72
+0.8%
8.4%US$115.00US$79.22n/a24
Nov ’23US$83.72
US$92.26
+10.2%
8.4%US$115.00US$79.22n/a24
Oct ’23US$79.01
US$95.63
+21.0%
9.1%US$115.00US$73.00n/a24
Sep ’23US$86.17
US$95.90
+11.3%
8.8%US$115.00US$79.50n/a24
Aug ’23US$84.09
US$95.54
+13.6%
8.7%US$115.00US$79.50n/a25
Jul ’23US$76.75
US$100.49
+30.9%
12.0%US$123.00US$79.30n/a25
Jun ’23US$85.00
US$105.65
+24.3%
9.5%US$125.00US$83.30n/a25
May ’23US$80.59
US$106.60
+32.3%
10.0%US$125.00US$83.30n/a24
Apr ’23US$86.99
US$111.58
+28.3%
9.4%US$125.00US$95.00n/a24
Mar ’23US$87.63
US$113.57
+29.6%
10.1%US$135.00US$89.00n/a24
Feb ’23US$103.95
US$114.10
+9.8%
9.6%US$135.00US$89.00n/a24
Jan ’23US$98.16
US$111.10
+13.2%
8.5%US$125.00US$85.00US$85.0223
Dec ’22US$95.26
US$110.65
+16.2%
8.5%US$125.00US$85.00US$93.0023
Nov ’22US$104.00
US$110.74
+6.5%
8.5%US$125.00US$85.00US$83.7223
Oct ’22US$99.05
US$105.47
+6.5%
10.8%US$125.00US$79.00US$79.0123
Sep ’22US$104.31
US$102.19
-2.0%
9.8%US$116.00US$79.00US$86.1724
Aug ’22US$95.98
US$99.86
+4.0%
10.3%US$116.00US$70.00US$84.0925
Jul ’22US$92.02
US$95.43
+3.7%
11.2%US$118.00US$70.00US$76.7524
Jun ’22US$92.11
US$91.57
-0.6%
10.3%US$118.00US$70.00US$85.0023
May ’22US$82.55
US$90.89
+10.1%
10.1%US$117.00US$70.00US$80.5925
Apr ’22US$78.22
US$85.76
+9.6%
11.8%US$102.00US$60.00US$86.9926
Mar ’22US$79.16
US$82.56
+4.3%
11.3%US$98.00US$60.00US$87.6326
Feb ’22US$67.67
US$81.37
+20.2%
11.2%US$98.00US$60.00US$103.9526
Jan ’22US$68.53
US$66.15
-3.5%
13.6%US$86.00US$50.00US$98.1625

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


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