Moody's Corporation provides credit ratings and research covering debt instruments and securities, and Moody's Analytics, which offers leading-edge software, advisory services and research for credit and economic analysis and financial risk management. The company was founded in 1900 and is based in New York, New York.
MCO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MCO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Moodys Corp ranked in the 30th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Moodys Corp ended up being:
MCO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 33.66% of tickers in our DCF set.
Relative to other stocks in its sector (Financial Services), Moodys Corp has a reliance on debt greater than only 23.14% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Moodys Corp? See NHLD, AMK, OCSI, MSCI, and MMC.
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Jayus Research on Seeking Alpha | September 14, 2020
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