Moody’s Corporation Intrinsic Value – Moody’s Corp. stock struggles against competitors, slipping 0.28% on turbulent trading day
March 27, 2024
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Moody’s Corporation ($NYSE:MCO) is a global financial services company that provides credit ratings, research, tools, and analysis to businesses and governments. The company is known for its credit rating agency, Moody’s Investors Service, which assesses the creditworthiness of entities and issues credit ratings. Moody’s Corporation’s stock is listed on the New York Stock Exchange under the ticker symbol MCO. On Monday, Moody’s Corp. stock faced challenges in the market as it struggled against its competitors. The stock closed at $386.57, a decrease of 0.28%, in a turbulent trading session for the overall stock market. This decline was in contrast to its competitors, who managed to hold onto their gains or only experienced minor losses. The disappointing performance of Moody’s Corp. stock can be attributed to a multitude of factors. Firstly, the overall market sentiment was negative on Monday, with the S&P 500 declining by 1.59%. This decline was primarily driven by concerns over rising inflation and interest rates, as well as uncertainties surrounding the ongoing trade tensions between the United States and China.
These factors likely had a trickle-down effect on Moody’s Corp. stock, causing it to struggle against its competitors. Secondly, Moody’s Corp. also faces competition from other financial services companies in the credit ratings industry. With the increasing demand for independent credit analysis and ratings, there has been an influx of new players in the market, intensifying the competition for Moody’s Corp. This could have potentially impacted the stock’s performance on Monday. Despite the struggles faced by Moody’s Corp. stock on Monday, the company remains a market leader in the credit ratings industry and has a strong track record of delivering solid financial results. In fact, in its most recent earnings report, Moody’s Corporation reported better-than-expected results, with revenue and earnings both exceeding analyst expectations. In conclusion, while Moody’s Corp. stock may have slipped 0.28% on a turbulent trading day and ended the day down 1.59%, it is important to consider the broader market conditions and potential competition faced by the company. Moody’s Corporation remains a highly reputable and established player in the financial services industry, and its long-term performance should not be judged solely based on one day’s trading session.
Analysis – Moody’s Corporation Intrinsic Value
As an investment research company, GoodWhale has thoroughly analyzed the financials of MOODY’S CORPORATION to determine its intrinsic value. After careful consideration of various factors, we have arrived at an intrinsic value of around $378.0 per share for MOODY’S CORPORATION. Our team has used our proprietary Valuation Line to calculate this intrinsic value. The Valuation Line takes into account multiple financial metrics such as past performance, growth potential, and industry trends to arrive at a fair value for a company’s stock. Currently, MOODY’S CORPORATION stock is trading at $386.6 per share. This means that the stock is overvalued by 2.3%, based on our analysis. While this may not seem like a significant difference, it is important for investors to carefully consider the intrinsic value of a stock before making any investment decisions. At GoodWhale, we believe in making informed investment decisions based on thorough analysis and research. We strive to provide our clients with accurate and unbiased information, allowing them to make the best investment choices for their portfolio. In conclusion, our analysis shows that MOODY’S CORPORATION stock is currently trading at a fair price, albeit slightly overvalued. Investors should carefully consider our calculated intrinsic value before making any investment decisions related to this stock. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Moody’s Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 5.92k | 1.61k | 28.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Moody’s Corporation. More…
| Operations | Investing | Financing |
| 2.15k | -247 | -1.58k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Moody’s Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.62k | 11.15k | 18.13 |
Key Ratios Snapshot
Some of the financial key ratios for Moody’s Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.3% | -3.1% | 38.2% |
| FCF Margin | ROE | ROA |
| 31.8% | 43.3% | 9.6% |
Peers
Its competitors include FactSet Research Systems Inc, QuoteMedia Inc, and CRISIL Ltd.
– FactSet Research Systems Inc ($NYSE:FDS)
FactSet Research Systems Inc. is a provider of integrated financial information and analytical applications to the investment community. Headquartered in Norwalk, Connecticut, FactSet has 34 offices in 20 countries. More than 85,000 professionals rely on FactSet to make informed decisions. The company’s products are used by investment professionals including buy-side portfolio managers and analysts, sell-side equity research analysts, and investment bankers, as well as corporate officers and other professionals who work with and invest in the financial markets. FactSet provides data on more than one million global companies, including public and private equity, venture capital, and real estate firms. The company also offers economic data, country risk and industry analysis, and corporate governance tools.
– QuoteMedia Inc ($OTCPK:QMCI)
QuoteMedia is a provider of real-time market data and streaming financial news. The company’s products and services include streaming quotes, portfolios, watchlists, charts, news headlines, and more. QuoteMedia’s market data is used by financial websites, brokerages, and trading applications. The company’s ROE reflects its negative net income.
– CRISIL Ltd ($BSE:500092)
CRISIL Ltd is a credit rating agency and research firm based in India. It is majority-owned by Standard & Poor’s, a division of McGraw Hill Financial. CRISIL rates debt instruments issued by companies, banks, non-banking financial companies (NBFCs), and sovereigns. It also provides research on companies, industries, and economies.
CRISIL’s market cap as of 2022 is 218.59B and its ROE is 30.52%. The company’s main business is providing credit ratings and research on companies, industries, and economies.
Summary
Moody’s Corporation stock performed below its competitors on Monday, with a 0.28% drop to $386.57. The overall stock market also had a rough day, with the S&P 500 experiencing a downturn. This could suggest that investor sentiment towards Moody’s Corp may not be as positive as that towards its competitors.
Further analysis is needed to determine the reason for this underperformance, which could range from company-specific factors to broader market trends. Investors should continue to closely monitor Moody’s Corp’s performance and take into account other factors such as financial health and industry outlook before making any investment decisions.
