This Report on Moody’s Corporation (NYSE:MCO) has nrrm generated using the tool s available on StockCalc.com. Patchel l Brook Equity Analytics Inc. emphasizes that the user assumes all risks associated with the use of this report or the Stockcalc website including, but not limited to, all terms and conditions mentioned in the legal disclaimer. To access all of the tools on Stockcalc, including more detailed valuation reports and the model s used to generate these valuations, pl ease subscribe for a free 30 day trial of Stockcalc here.
Valuation Summary: Moody's $151.31 (USD) Close Price as of 05/02/2018
Based on the analysis conducted in this report, Moody's, (MC O:N YS) i s found to be Fairly valued to slightly Undervalued.
Third Point's Dan Loeb discusses their new positions in a letter to investor reviewed by ValueWalk. Stay tuned for more coverage. Loeb notes some new purchases as follows: Third Point’s investment in Grab is an excellent example of our ability to “lifecycle invest” by being a thought and financial partner from growth capital stages to Read More
Valuation Details
Discounted Cash Flow and Sensitivity Analysis for MCO:NYS
Using a discounted cash flow model we generated an intrinsic value of $110.88 (USD) for MCO:NYS
Sensitivity Analysis
(showing how changes in the input variables impact the DCF calculation)
Comparables Model
Using similar companies and price based ratios we generated a valuation of $0.00 (USD) for MCO:NYS. We also
generated a valuation of $0.00 (USD) using other metrics and comparables. The comparable companies were
No comparables.
Multiples
Adjusted Book Value versus Historical Price to Book
The average the Price to Book ratio for MCO:NYS for the last 10 years was 78.30
We ran the Adjusted Book Value for MCO:NYS and generated a book value of ($6.42) (USD) By multiplying these we get an adjusted valuation of ($502.97) (USD)
Analyst Data
Company Overview (MCO:NYS USD)
Detailed Company Description
Moody's Corporation publishes credit ratings, and research reports on fixed-income securities, issuers of securities, and other credit obligations. The company primarily provides opinions and reports to investors and institutions.
Explanation of Valuation Models
We have up to 6 valuation points for each company in the database.
The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).
The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.
With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share. If we have Analyst coverage for the company we use the consensus target price here.
See the full PDF below.