From Seekingalpha · Wolf Report · · 40s
Moody's Valuation Concerns
Moody's stock trades at 30x P/E despite strong fundamentals.
In brief
Moody's stock trades at 30x P/E despite strong fundamentals. Moody's Corporation remains a high-quality franchise but its 28-30x P/E valuation is difficult to justify. Originally reported by Seekingalpha.
Moody's valuation
Moody's Corporation remains a high-quality, cash-generative franchise.
Q3 results
Q3 '26 results confirm slowing revenue growth (1%) and declining transaction revenues (-5%).
AI impact
AI is a useful tool for MCO but does not warrant the current valuation premium.
Rating and target
I maintain a Hold rating with a Buy target at $410/share and fair value at $515/share.
The main idea
Moody's Corporation remains a high-quality franchise but its 28-30x P/E valuation is difficult to justify.
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