---
title: Moody's (MCO) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/mco
ticker: MCO
as_of: 2026-10-17
sector: Financial Services
industry: Financial - Data & Stock Exchanges
---
# Moody's (MCO)

Moody's (MCO) closed at $485.07 on Oct 16, 2026, overvalued by 100% vs its model value of $242.79 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $485.07 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $242.79 |
| Price vs model | overvalued by 100% vs model |
| Range of that model | $167.16 – $439.44 |
| Market value | $84.0B |
| P/E (fiscal 2025) | 35.5 |
| Net margin (fiscal 2025) | 31.9% |
| Free cash flow (fiscal 2025) | $2.6B |
| Dividend yield (trailing twelve months) | 0.83% |
| Beta | 1.35 |
| Cost of capital (WACC) | 9.71% |
| Business classification | Mature & Stable (Moderate growth (~14% recent), High profitability (32% net margin), Highly cyclical earnings) |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 0.83% |
| Dividends per share, last 12 months | $4.03 |
| Dividends / free cash flow (fiscal 2025) | 27.2% |
| Raised | 16 years in a row |
| Growth over 5 years | 10.7% a year |
| Latest payment | $1.03, ex-date Aug 14, 2026, paid Sep 4, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 19, 2021 | $2.42 |
| To Aug 18, 2022 | $2.72 |
| To Aug 17, 2023 | $3.01 |
| To Aug 16, 2024 | $3.32 |
| To Aug 15, 2025 | $3.67 |
| Trailing twelve months (to Aug 14, 2026) | $4.03 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $242.79 | $167.16 | $439.44 |
| DCF · Perpetuity growth · 10y | cross check | $261.18 | $184.63 | $456.38 |
| DCF · EBITDA exit · 5y | cross check | $329.99 | $234.00 | $442.75 |
| DCF · EBITDA exit · 10y | cross check | $330.07 | $232.91 | $458.80 |
| P/E · peers | cross check | $387.04 | $345.82 | $467.51 |
| P/E · own history | cross check | $640.55 | $503.85 | $689.67 |
| PEG | sanity check | $263.08 | $263.08 | $263.08 |
| EV/EBITDA · peers | cross check | $332.48 | $296.73 | $434.83 |
| EV/Revenue · peers | cross check | $285.89 | $199.44 | $499.94 |
| Earnings power value | cross check | $102.05 | $84.97 | $125.37 |
| Dividend discount | cross check | $77.46 | $55.41 | $117.88 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 6 open-market sales ($1.9M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 1, 2026 | Minaya Jose | Director | Grant / award | 91.542 | $40,952.2 |
| Oct 1, 2026 | Phillips Jason D | Chief Acctg Off & Controller | Tax withholding | 21.36 | $9,629.1 |
| Oct 1, 2026 | Fauber Robert | President and CEO | Option/RSU exercise (10b5-1 plan) | 51 | $0 |
| Oct 1, 2026 | Fauber Robert | President and CEO | Open-market sell (10b5-1 plan) | 623 | $283,465 |
| Oct 1, 2026 | Fauber Robert | President and CEO | Option/RSU exercise (10b5-1 plan) | 572 | $95,810 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 15, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers | https://www.sec.gov/Archives/edgar/data/1059556/000105955626000041/mco-20260811.htm |
| Aug 12, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1059556/000105955626000038/mco-20260811.htm |
| Jul 24, 2026 | S-8 | Employee stock plan registration | https://www.sec.gov/Archives/edgar/data/1059556/000105955626000036/july2026s-8.htm |
| Jul 23, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1059556/000162828026049398/mco-20260630.htm |
| Jul 22, 2026 | 8-K | 2.02 Results of Operations (Earnings); 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1059556/000162828026049104/mco-20260722.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Buffett | 2026-06-30 | 24,669,778 | $11.2B |
| Chris Hohn | 2026-06-30 | 14,334,027 | $6.5B |
| John Armitage | 2026-06-30 | 1,704,229 | $771.9M |
| Valley Forge | 2026-06-30 | 1,317,188 | $596.6M |

17 tracked managers in all.

## About

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 o…

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Source: https://sweetvaluelab.com/stocks/mco (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.