Moody's Corporation (MCO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-66.1%

$171.91

vs $507.19 price

Levered DCF

$159.00

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

7.81

Safe zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	37.21×	41.82×	44.53×	37.3×	32.88×	30.62×	31.61×	20.47×
P/B	22.57×	24.14×	21.56×	20.34×	26.7×	34.7×	73.43×	58.46×
P/S	11.85×	12.14×	12.09×	9.37×	11.71×	10.14×	9.31×	6.04×
EV / EBITDA	24.51×	27.41×	30.55×	24.85×	24.26×	21.93×	21.99×	14.85×
Gross margin	68.2%	66.4%	65.1%	64.4%	69.5%	68.4%	67.1%	68.8%
Operating margin	44.8%	41.9%	37.5%	36.5%	45.7%	45.6%	43.0%	43.3%
Net margin	31.9%	29.0%	27.2%	25.1%	35.6%	33.1%	29.4%	29.5%
Current ratio	1.74×	1.43×	1.69×	1.72×	1.61×	2.03×	1.92×	1.61×
Debt / equity	1.81×	2.17×	2.23×	3.12×	2.92×	4.43×	10.06×	12.37×
Interest coverage	18.28×	14.56×	10.73×	9.25×	11.7×	10.55×	9.02×	9.04×
Dividend yield	0.8%	0.7%	0.8%	1.0%	0.6%	0.8%	0.8%	1.3%
Payout ratio	28.5%	30.1%	35.1%	37.5%	20.9%	23.6%	26.6%	25.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	60.7%	57.7%	48.4%	54.5%	81.2%	113.3%	232.4%	285.3%
Return on invested capital	21.0%	17.8%	15.1%	12.9%	18.6%	19.0%	19.4%	19.3%
Return on assets	15.5%	13.3%	11.0%	9.6%	15.1%	14.3%	13.9%	13.7%
Free cash flow yield	2.8%	2.9%	2.6%	2.3%	2.6%	3.8%	3.6%	5.1%
Earnings yield	2.7%	2.4%	2.2%	2.7%	3.0%	3.3%	3.2%	4.9%
Enterprise value	$96.5B	$91.4B	$76.8B	$57.3B	$79B	$58.8B	$49.3B	$30.8B
Net debt / EBITDA	1.26×	1.6×	2.1×	2.64×	1.89×	1.62×	1.93×	1.92×
Cash conversion cycle (days)	87	89	103	101	92	89	99	98