MCO · NYQ · Financial Services
Moody's Corporation
Also onShortfallConsensus DriftCrosscheck
Implied value per share
USD 123.13
Market price
USD 506.02
Implied upside
-75.7%
10-year forecast · Excess returns over book equity · Base case · Price 2026-11-02 · Accounts to 2025-12-31
NoteA financial, valued on excess returns over book equity.
Excess Returns
- Return on equity
- 63.8%
- Payout
- 30%
- Cost of equity
- 9.97%
- Return on equity by the final year
- 20.0%
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Opening book equity | USD 4.1bn | USD 4.8bn | USD 5.6bn | USD 6.4bn | USD 7.2bn | USD 8.1bn | USD 8.8bn | USD 9.5bn | USD 10.1bn | USD 10.5bn |
| Return on equity | 59.4% | 55.0% | 50.7% | 46.3% | 41.9% | 37.5% | 33.1% | 28.8% | 24.4% | 20.0% |
| Excess return | USD 2.0bn | USD 2.2bn | USD 2.3bn | USD 2.3bn | USD 2.3bn | USD 2.2bn | USD 2.0bn | USD 1.8bn | USD 1.5bn | USD 1.1bn |
| Present value | USD 1.8bn | USD 1.8bn | USD 1.7bn | USD 1.6bn | USD 1.4bn | USD 1.3bn | USD 1.1bn | USD 834.8m | USD 617.1m | USD 407.2m |
| Book equity | USD 4.1bn |
| Present value of excess returns | USD 12.5bn |
| Terminal, growing at 2.50% | USD 5.6bn |
| Equity value | USD 22.2bn |
| Per share | USD 123.13 |
Discount Rate
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 1.200 | Reported 1.299, pulled toward 1.0 (Blume) |
| Cost of equity | 9.97% | Risk-free + beta x equity risk premium |
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Yahoo Finance and RBA data. General information, not advice. Methodology.