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Moody's Corporation

MCO Financial Financial Data & Stock Exchanges

Moody's Corporation’s revenue for fiscal 2025 (year ended December 2025) was $7.7 billion, up 8.89% from fiscal 2024.

Revenue
+0.80%
EPS
+17.7%
Free cash flow
+1.52%
Total debt
−1.03%

Quarter to September 2026, against a year earlier

505.86 9.48 −1.84%
Market cap
$88.8B
P/E
31.3×
Fwd P/E
30.3×
Dividend yield
0.78%
F-score
9/9
Altman Z
n/a
Beneish M
n/a
Dividend safety
n/a
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Segments Valuation Filings

Moody's Corporation (MCO) valuation and DCF model

What the price implies · reverse DCF

At $505.86 the price implies 30.3% a year of dividend growth, at a 9.0% cost of equity.

The dividend a share grew 11.1% a year over the last ten years, 12.0% over the last five. The price asks for about three times its ten-year rate. Return on equity averaged 91.3% over ten years; the price implies 169.0% for good.

In December 2017 the price assumed 26.9% a year; Moody's Corporation went on to grow the dividend a share 20.1% a year to FY2025.

Price implies
30.3%
Last 5 years, reported
12.0%
Last 10 years, reported
11.1%

The headline discounts the last twelve months’ the dividend a share at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
30.3% a year for ten years
$505.86
today’s price
Its base case
11.1% a year for five years, then 6.7%
$105.61
79.1% below today’s price

Both are growth in the dividend a share, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Moody's Corporation’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Dividends
the four quarters to September 2026, from the 10-Q and 10-K filings

Yearly growth in the dividend. It usually slows as the company matures.

Today’s price implies the dividend a share growing 30.3% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

The model is a share’s own: no debt to take off and no shares to divide among.

Advanced inputs

Against Moody's Corporation’s own cost of capital: risk-free 4.3% + beta 1.30 × equity premium 4.5% = 10.2% cost of equity; weighted, 10.2%.

Use 10.2%
Base case value per share $105.61 ten years discounted, and what follows
Current price $505.86 market price per share
Below today’s price 79.1% downside at the base case’s assumptions

How we got there$42.44 10 years of dividends+$63.17 terminal value=$105.61 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Financial Data & Stock Exchanges).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 31.29× 38.20× 33.45× 6% below 24.85× 26% above
P/FCF 29.89× 35.89× 33.47× 11% below 20.23× 48% above
P/B 26.08× 21.99× 28.98× 10% below 4.56× 472% above
EV/EBITDA — 26.65× 23.40× — 3.38× —
EV/Sales — 12.18× 10.18× — 3.90× —
P/E P/FCF P/B EV/EBITDA EV/Sales
21.37×28.07×34.77×41.47×10Y avg 33.47×2017201820192020202120222023202420252026

MCO trades at 29.89× P/FCF, against a 10-year average of 33.47× (range 19.59×–42.69×). That is cheaper than 67% of the last 9 year-end readings; re-rating to the average implies $566.51 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.