# Moody's Corporation (MCO) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Financial Services / Capital Markets. Price $493.55, market value $85.5 billion.

## Valuation
- **P/E (trailing): 31.4×** (5-yr avg 38.2×, 3-yr avg 40.9×). Moody's Corporation trades at 31.4× trailing earnings, close to its own five-year average of 38.2×. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 26.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.22**. A PEG of 1.22 is in the range usually read as fairly priced for its growth.
- **Price / sales: 10.5×**. Each dollar of revenue is priced at 10.5×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 28.3×**. The shares trade at 28.3× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 21.7×**. Enterprise value is 21.7× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 3.5%** (5-yr avg 2.7%). Free cash flow equals 3.5% of the market value, above its five-year average of 2.7%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 3.2%**. The inverse of the P/E: 3.2% of the price is earned each year.

## Profitability
- **Operating margin: 44.8%**. 44.8% of revenue is left after running the business, an exceptional level.
- **Net margin: 31.9%**. 31.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 60.7%**. A 60.7% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 33.3%**. Return on all capital, debt included, is 33.3%: comfortably above what that capital costs.
- **Return on assets: 17.7%**. Each dollar of assets produces 17.7% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 8.9%** (3-yr 12.2%/yr, 5-yr 7.5%/yr). Revenue grew 8.9% over the last year, against 7.5% a year compounded over five years.
- **EPS growth (1 yr): 21.4%** (3-yr 22.5%/yr, 5-yr 7.8%/yr). Earnings per share rose 21.4%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 29.3%/yr**. Free cash flow has compounded at 29.3% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.
- **Cash and short-term investments: $2.4 billion**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 0.83%** ($3.94 per share, trailing). Moody's Corporation yields 0.83%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 29%** (24% of free cash flow). 29% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 26**. 26 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 10.9%/yr** (1-yr 10.6%). The dividend has compounded at 10.9% a year over five years, doubling roughly every 7 years at that pace.

## Analyst view
- **Analyst consensus: buy** (21 analysts). 21 analysts cover Moody's Corporation; the consensus is buy, with an average price target of $561.90 (+14% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -0.6%** (YTD -2.9%, 3-mo 9.3%). The shares are down 0.6% over twelve months including dividends.
- **From 52-week high: -9.8%** (22.7% above the low). Trading 10% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): 0.55** (volatility 28%). Beta of 0.55 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MCO · Page: https://foliofundamentals.com/stocks/mco

Not investment advice.