MCO Stock Analysis
NYQ · Financial Services · Financial Data & Stock Exchanges
$461.61
-7.09 (-1.51%)
MCO Interactive Price Chart & Trading Signals
MCO Stock Snapshot — Valuation, Risk & Technical Signals
MCO Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$79.94B
P/E Ratio
29.67
Forward P/E
24.39
PEG Ratio
1.64
P/B Ratio
26.43
EPS
$15.56
Dividend Yield
0.88%
52W Range
$402.28 – $546.88
Beta
1.33
Volume
0.2M
ROE
76.9%
Profit Margin
34.3%
Revenue Growth
15.1%
Gross Margin
75.0%
EV/EBITDA
21.57
Analyst Target
$561.90
The trailing price-to-earnings ratio stands at 29.7x. Forward P/E of 24.4x implies earnings expansion expected. Price-to-book is 26.43x. EV/EBITDA sits at 21.57x. Market capitalization is $79.94B. Revenue is growing at 15.1% on a trailing basis. Earnings are expanding at 56.7%. Profit margins are 34.3%. Return on equity is 76.9%. Beta of 1.33 indicates elevated market sensitivity.
Analyst Consensus
Recommendation
Buy
Low Target
$505.00
Mean Target
$561.90
High Target
$610.00
Based on 21 analysts
About MCO
Moody's Corporation, together with its subsidiaries, operates as an integrated risk assessment firm in the United States, the rest of the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Moody's Analytics (MA) and Moody's Investors Service (MIS). The MA segment develops a range of products and services that support the risk management activities of institutional participants in financial markets. This segment also offers credit research, credit models and analytics, economic data and models, and structured finance solutions; data sets on companies and securities; and cloud-based SaaS subscription solutions supporting banking, insurance, and know-your-customer workflows. The MIS segment publishes credit ratings and provides assessment services on various debt obligations, programs and facilities, and entities that issue such obligations, including corporate, financial institution, and governmental obligations, as well as structured finance securities. It also provides ratings, investment research, compliance and third-party risk, supplier risk, trade credit, business intelligence sales and marketing, financial and regulatory reporting, balance sheet management, capital management, credit portfolio management, and model risk and governance solutions; Maxsight, a unified risk platform; lending suite, origination, and monitoring solutions; and property, casualty, and sustainable insurance underwriting solutions. The company serves the financial, banking, insurance, corporate, public, and asset management sectors. The company was formerly known as Dun and Bradstreet Company and changed its name to Moody's Corporation in September 2000. Moody's Corporation was founded in 1900 and is headquartered in New York, New York.
MCO Deep Dive Analysis
Bottom Line
Verdict
OvervaluedBest for
Growth-oriented investorsWatch out for
Premium valuation, High volatilityNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
Moody's Corporation (MCO) trades above our multi-model fair value estimate of $196.48 by approximately 57.4%. Trailing P/E: 29.7x. Profitability signals include profit margin of 34.3% and return on equity of 76.9%. Recent growth metrics show revenue growth of 15.1% and earnings growth of 56.7%. Risk profile: elevated market beta of 1.33. Consensus: buy.
Valuation, Growth & Risk
Valuation
Overvalued
P/E 29.7x
Price is above what fundamentals suggest.
Growth
Expanding
Rev 15.1%
Revenue is outpacing the market.
Risk
Elevated
Beta 1.33
Expect bigger swings than the market.
Valuation Snapshot
Moody's Corporation (MCO) trades above our multi-model fair value estimate of $196.48 by approximately 57.4%. The trailing price-to-earnings ratio stands at 29.7x. Forward P/E of 24.4x suggests earnings compression ahead. Price-to-sales is 9.8x. Price-to-book is 26.4x. EV/EBITDA sits at 21.6x. Market capitalization is $79.94B.
Why it matters: Paying a premium works only if the company keeps growing faster than expected.
Growth & Profitability
Revenue is growing at 15.1% on a trailing basis. Earnings are expanding at 56.7%. Profit margins are 34.3%. Return on equity is 76.9%. Return on assets is 15.6%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 1.33 indicates elevated market sensitivity. Net debt position is $6.12B.
Why it matters: A riskier stock can fall more in a downturn. Make sure your portfolio can handle the volatility.
Analyst Context
Analyst consensus target of $561.90 implies 21.7% upside. Target range spans $505.00 to $610.00. 21 analysts cover the stock. Consensus recommendation: buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Investor Fit
Premium valuation is supported by above-average growth, potentially fitting growth-oriented strategies.
Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
MCO Overvalued
Moody's Corporation (MCO) trades above our multi-model fair value estimate of $196.48 by approximately 57.4%.
Frequently Asked Questions
ValuationIs MCO stock overvalued right now?
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About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.