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Moody's Corporation — Intrinsic Value & Fair Price

MCO
NYSEFinancial ServicesFinancial - Data & Stock ExchangesCIK 0001059556moodys.comAbout MCO
Last close · Oct 16, 2026485.07+1.38 (+0.29%)
Market cap$84.0B
Model value · DCF · Perpetuity growth · 5y
242.79
Moody's closed at $485.07 — overvalued by 100% vs model.
167.16the model's range439.44

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
77.46 – 640.55
Wall St. target
545.00 11% below
Above model, 1y
20 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
0.83%
Past 2 years
low 0.64%high 0.92%
Dividends per share, a year at a time
$2.42Aug ’21$2.72Aug ’22$3.01Aug ’23$3.32Aug ’24$3.67Aug ’25$4.03TTM
Dividends / free cash flow, FY2025
27.2%
Raised
16 years in a row
Growth, 5 yrs
10.7% a year
Last change
+9.6% · Mar 2026
Every payment, with ex-dates · latest $1.03, paid Sep 4, 2026

Research on MCO

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How it is valued

Valued asMature & stable
Moderate growth (~14% recent)High profitability (32% net margin)Highly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for mature companies
P/E
35.5×
EV / EBITDA
22.5×
FCF yield
3.0%
Dividend yield, TTM
0.83%
Beta
1.35
Cost of capital (WACC)
9.71%
Full financials

Analyst actions

third-party, quoted
10-16Jefferies · target560.00
10-07Morgan Stanley · target470.00
07-27Mizuho Securities · target530.00
01-13Daiwa Capital · “Outperform” from “Neutral”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
2 more companies list MCO as a comparable

The weekly

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About Moody's

Moody's Corporation operates as a global leader in risk assessment, divided into two main segments: Moody's Investors Service and Moody's Analytics. Moody's Investors Service is dedicated to issuing credit ratings and providing detailed assessments for a diverse range of debt obligations and the entities that issue them. This encompasses corporate, financial institution, governmental, and structured finance securities across approximately 140 nations. These ratings are made publicly available through press releases, digital media, and real-time financial information systems. Its vast scope includes ratings for thousands of non-financial corporations, financial institutions, public finance issuers, sovereign and sub-sovereign governments, supranational bodies, infrastructure projects, and structured finance deals. The Moody's Analytics segment develops and provides a comprehensive suite of products and services designed to support the risk management needs of institutional participants in financial markets. This includes subscription-based research, data, and analytical tools such as credit ratings, quantitative credit scores, economic forecasts, business intelligence, commercial real estate data, and specialized training and certification programs. Additionally, this segment offers offshore analytical and research services, along with advanced software solutions for risk management. Originally founded in 1900 and headquartered in New York, New York, the company was known as Dun and Bradstreet Company before officially becoming Moody's Corporation in September 2000.

CEO
Robert Scott Fauber
Headquarters
New York City, NY
Employees
16,000
IPO
1994-10-31
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.