MCO Relative Valuation
MCO's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MCO is overvalued; if below, it's undervalued.
Historical Valuation
Moody's Corp (MCO) is now in the Fair zone, suggesting that its current forward PE ratio of 30.73 is considered Fairly compared with the five-year average of 32.96. The fair price of Moody's Corp (MCO) is between 472.95 to 576.60 according to relative valuation methord.
Relative Value
Fair Zone
472.95-576.60
Current Price：489.70
Fair
30.57
PE
1Y
3Y
5Y
Trailing
Forward
22.36
EV/EBITDA
Moody's Corp. (MCO) has a current EV/EBITDA of 22.36. The 5-year average EV/EBITDA is 24.27. The thresholds are as follows: Strongly Undervalued below 19.14, Undervalued between 19.14 and 21.71, Fairly Valued between 26.83 and 21.71, Overvalued between 26.83 and 29.39, and Strongly Overvalued above 29.39. The current Forward EV/EBITDA of 22.36 falls within the Historic Trend Line -Fairly Valued range.
25.32
EV/EBIT
Moody's Corp. (MCO) has a current EV/EBIT of 25.32. The 5-year average EV/EBIT is 27.71. The thresholds are as follows: Strongly Undervalued below 21.11, Undervalued between 21.11 and 24.41, Fairly Valued between 31.01 and 24.41, Overvalued between 31.01 and 34.31, and Strongly Overvalued above 34.31. The current Forward EV/EBIT of 25.32 falls within the Historic Trend Line -Fairly Valued range.
10.83
PS
Moody's Corp. (MCO) has a current PS of 10.83. The 5-year average PS is 10.50. The thresholds are as follows: Strongly Undervalued below 8.15, Undervalued between 8.15 and 9.33, Fairly Valued between 11.68 and 9.33, Overvalued between 11.68 and 12.85, and Strongly Overvalued above 12.85. The current Forward PS of 10.83 falls within the Historic Trend Line -Fairly Valued range.
28.48
P/OCF
Moody's Corp. (MCO) has a current P/OCF of 28.48. The 5-year average P/OCF is 29.23. The thresholds are as follows: Strongly Undervalued below 21.87, Undervalued between 21.87 and 25.55, Fairly Valued between 32.90 and 25.55, Overvalued between 32.90 and 36.58, and Strongly Overvalued above 36.58. The current Forward P/OCF of 28.48 falls within the Historic Trend Line -Fairly Valued range.
30.64
P/FCF
Moody's Corp. (MCO) has a current P/FCF of 30.64. The 5-year average P/FCF is 33.43. The thresholds are as follows: Strongly Undervalued below 23.18, Undervalued between 23.18 and 28.31, Fairly Valued between 38.56 and 28.31, Overvalued between 38.56 and 43.69, and Strongly Overvalued above 43.69. The current Forward P/FCF of 30.64 falls within the Historic Trend Line -Fairly Valued range.
Moody's Corp (MCO) has a current Price-to-Book (P/B) ratio of 22.18. Compared to its 3-year average P/B ratio of 21.58 , the current P/B ratio is approximately 2.79% higher. Relative to its 5-year average P/B ratio of 24.00, the current P/B ratio is about -7.57% higher. Moody's Corp (MCO) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.62%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.83% , the current FCF yield is about -100.00% lower.
22.07
P/B
Median3y
21.58
Median5y
24.00
2.73
FCF Yield
Median3y
2.62
Median5y
2.83
Competitors Valuation Multiple
The average P/S ratio for MCO's competitors is , providing a benchmark for relative valuation. Moody's Corp Corp (MCO) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 10.70%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MCO increased by 3.40% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.81B to 2.01B.
The secondary factor is the Margin Expansion, contributed 9.47%to the performance.
Overall, the performance of MCO in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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