MCO
Moody's Corporation
$478.65
▲ 1.2%Updated Aug 7, 11:30 AM ET
MCO at a glance — five pillars scored 0–100 from real filed financials.
Overall: Favorable · 62/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 4.2% over the last 12 months
Market Cap
$85.69B
P/E
33.59x
Forward P/E (est.)
27.88x
ROE
66.7%
Revenue Growth
8.9%
EPS Growth
20.4%
Profit Margin
31.7%
FCF Yield
2.2%
Debt / Equity
1.73x
ROIC
27.0%
Interest Coverage
—
Current Ratio
1.16x
Dividend Yield
0.9%
Implied Growth (rev. DCF)
5.8%
Rating Score
62/100
Moody's Corporation (MCO) is a large-cap company in the Financial Exchanges & Data industry, part of the Financials sector of the S&P 500, with a market value around $85.69B.
In its latest reported year it generated about $7.72B in revenue and $2.46B in net profit.
Our model rates MCO Favorable (62/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.
40.0% average over the last 3 years
±7.7 pts around 39.0% across 10 years
grew in 8 of the last 9 year-over-year periods
positive in 10 of 10 years
27.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what MCO's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. MCO trades near $478.65, above its 50-day average ($451.61) and 200-day average ($471.07). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 70 it is overbought — the recent rally is stretched and can cool off.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. MCO's is $14.10 (~2.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month MCO found buyers near $437.51 (support) and sellers near $490.74 (resistance); its 52-week range is $402.28–$546.88. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
5.6%
Revenue moved from $3.60B in 2016 to $7.72B in 2025, a 8.8% compound annual growth rate. The most recent year grew a steady 8.9% year over year. Slower, mature growth is common for established businesses.
Gross Margin
74.4%
Operating Margin
43.4%
Net Margin
31.9%
ROE
66.7%
Moody's Corporation keeps about 31.7% of each sales dollar as net profit, with a 74.4% gross margin and 43.4% operating margin. Return on equity is 66.7% and return on invested capital about 27.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$6.96B
Net Debt
$5.49B
Net Debt / EBITDA
1.64x
Debt / Equity
1.73x
Leverage: debt-to-equity is 1.7x, with a current ratio of 1.2x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $6.96B of total debt against $1.47B of cash.
Operating CF
$2.90B
Free Cash Flow
$2.58B
FCF Margin
33.4%
In the latest year Moody's Corporation produced about $2.90B of operating cash flow and $2.58B of free cash flow after capital spending. That is a free-cash-flow yield of about 2.2% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
0.9%
Per share (latest FY)
$3.76
Total paid (latest FY)
$701.00M
History on record
9 years
dividend uses 27% of free cash flow
29% of net income paid out
total dividends increased 8 years in a row
no cuts in the last 9 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
33.59x
P/S
10.63x
P/B
22.97x
EV / EBITDA
—
MCO trades at 33.6x trailing earnings (about 27.9x on estimated forward earnings), 10.6x sales, and 23.0x book value. Reverse-engineering today's price implies the market expects roughly 5.8% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$334.16
Current price
$478.65
Starting FCF (latest 10-K)
$2.58B
Growth, years 1–5
8.9%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where MCO sits versus its Financials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 141 Financials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How MCO stacks up against its Financials peers — valuation, profitability, and growth versus the sector median.
In the Financials sector (289 S&P 500 companies), MCO ranks #79 of 289 by our overall rating. It trades at a premium versus the sector on earnings (33.6x P/E vs. 15.8x median) with a higher return on equity (66.7% vs. 13.6%) and slower revenue growth (8.9% vs. 15.9%).
P/E vs sector
33.6x
median 15.8x
ROE vs sector
66.7%
median 13.6%
Growth vs sector
8.9%
median 15.9%
Sector rank
#79
of 289 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Financials companies by sub-industry and size. Sector median is across all 289 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $478.65 today · expected CAGR -2% – 9%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $8.41B | $9.17B | $10.00B | $10.89B | $11.88B |
| Net income | $2.69B | $2.93B | $3.20B | $3.49B | $3.80B |
| EPS | $15.04 | $16.39 | $17.87 | $19.47 | $21.23 |
| Share price (low) | $300.74 | $327.80 | $357.31 | $389.46 | $424.52 |
| Share price (high) | $511.25 | $557.27 | $607.42 | $662.09 | $721.68 |
| CAGR (low–high) | -37% / 7% | -17% / 8% | -9% / 8% | -5% / 8% | -2% / 9% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for MCO:
- High net margins (31.7%) point to pricing power or efficiency.
- Strong return on equity (66.7%) shows capital is put to work well.
- Our model's overall read is Favorable (62/100).
The case against MCO:
- Elevated leverage (debt/equity 1.7x) adds financial risk.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Valuation risk — at 33.6x earnings, disappointing results could compress the multiple.
Balance-sheet risk — debt/equity of 1.7x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Moody's Corporation is a large-cap financials business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 33.6x earnings, which our model scores Favorable (62/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 31 Wall Street analysts covering MCO recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
MCO's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
MCO — frequently asked questions
Is MCO a good stock to buy?
We don't give buy or sell advice. Our model rates Moody's Corporation Favorable (62/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is MCO's rating on The Stocks School?
Moody's Corporation currently scores 62/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does MCO's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Moody's Corporation's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for MCO calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this MCO analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell MCO. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.