Latest Ratios: P/E Ratio 36.6x · EV/EBITDA 23.8x · ROE 62.0%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $88.7B | $91.9B | $86.5B | $71.9B | $51.5B | $73.4B | $54.9B | $45.5B | $27.2B | $28.7B | $18.4B |
| Enterprise Value | $93.7B | $96.9B | $91.8B | $77.1B | $57.6B | $79.6B | $59.3B | $49.8B | $31.2B | $33.1B | $19.7B |
| P/E Ratio → | 36.61 | 37.37 | 42.04 | 44.74 | 37.45 | 33.16 | 30.91 | 32.00 | 20.78 | 28.66 | 69.32 |
| P/S Ratio | 11.50 | 11.91 | 12.20 | 12.15 | 9.41 | 11.80 | 10.23 | 9.42 | 6.13 | 6.82 | 5.11 |
| P/B Ratio | 21.41 | 21.86 | 23.20 | 20.67 | 19.14 | 25.17 | 31.16 | 54.35 | 41.50 | — | — |
| P/FCF | 34.46 | 35.69 | 34.31 | 38.23 | 43.21 | 39.33 | 26.89 | 28.32 | 19.86 | 43.17 | 16.58 |
| P/OCF | 30.59 | 31.68 | 30.47 | 33.41 | 34.91 | 36.60 | 25.60 | 27.16 | 18.63 | 38.35 | 15.02 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 12.55 | 12.95 | 13.04 | 10.53 | 12.79 | 11.04 | 10.31 | 7.03 | 7.88 | 5.47 |
| EV / EBITDA | 23.81 | 24.62 | 26.99 | 29.74 | 24.72 | 25.65 | 22.23 | 21.89 | 14.74 | 16.55 | 12.02 |
| EV / EBIT | 27.12 | 28.04 | 31.63 | 36.02 | 29.13 | 26.54 | 24.09 | 24.42 | 16.57 | 16.55 | 27.78 |
| EV / FCF | — | 37.62 | 36.42 | 41.04 | 48.33 | 42.63 | 29.02 | 31.02 | 22.77 | 49.90 | 17.76 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.2% | 68.2% | 66.4% | 65.1% | 64.4% | 69.5% | 68.4% | 67.1% | 68.8% | 68.3% | 69.1% |
| Operating Margin | 44.8% | 44.8% | 41.9% | 37.5% | 36.5% | 45.7% | 45.6% | 43.0% | 43.3% | 43.8% | 42.0% |
| Net Profit Margin | 31.9% | 31.9% | 29.0% | 27.2% | 25.1% | 35.6% | 33.1% | 29.4% | 29.5% | 23.8% | 7.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 62.0% | 62.0% | 57.1% | 52.1% | 49.0% | 94.6% | 136.8% | 190.5% | 484.1% | — | — |
| ROA | 15.7% | 15.7% | 13.7% | 11.1% | 9.5% | 16.3% | 15.7% | 14.4% | 14.4% | 14.4% | 5.1% |
| ROIC | 22.5% | 22.5% | 19.9% | 15.5% | 14.0% | 21.8% | 23.4% | 23.4% | 24.6% | 35.6% | 42.2% |
| ROCE | 27.9% | 27.9% | 24.7% | 18.4% | 16.5% | 25.4% | 26.4% | 26.3% | 27.6% | 39.1% | 44.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.75 | 1.75 | 2.08 | 2.13 | 2.92 | 2.73 | 3.94 | 7.35 | 8.65 | — | — |
| Debt / EBITDA | 1.87 | 1.87 | 2.28 | 2.86 | 3.38 | 2.57 | 2.60 | 2.71 | 2.68 | 2.77 | 2.05 |
| Net Debt / Equity | — | 1.18 | 1.43 | 1.52 | 2.27 | 2.11 | 2.47 | 5.16 | 6.08 | — | — |
| Net Debt / EBITDA | 1.26 | 1.26 | 1.57 | 2.04 | 2.62 | 1.99 | 1.63 | 1.90 | 1.89 | 2.23 | 0.80 |
| Debt / FCF | — | 1.93 | 2.12 | 2.81 | 5.12 | 3.30 | 2.13 | 2.69 | 2.91 | 6.73 | 1.18 |
| Interest Coverage | 18.28 | 18.28 | 14.23 | 10.35 | 9.15 | 12.34 | 10.61 | 8.87 | 8.85 | 9.28 | 4.66 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.74 | 1.74 | 1.43 | 1.69 | 1.72 | 1.61 | 2.03 | 1.92 | 1.61 | 1.24 | 1.34 |
| Quick Ratio | 1.74 | 1.74 | 1.43 | 1.69 | 1.72 | 1.61 | 2.03 | 1.92 | 1.61 | 1.24 | 1.34 |
| Cash Ratio | 0.80 | 0.80 | 0.67 | 0.85 | 0.74 | 0.73 | 1.17 | 0.96 | 0.80 | 0.52 | 0.84 |
| Asset Turnover | — | 0.49 | 0.46 | 0.40 | 0.38 | 0.42 | 0.43 | 0.47 | 0.47 | 0.49 | 0.68 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 28.5% | 28.5% | 30.1% | 35.1% | 37.5% | 20.9% | 23.6% | 26.6% | 25.7% | 29.0% | 106.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.7% | 2.7% | 2.4% | 2.2% | 2.7% | 3.0% | 3.2% | 3.1% | 4.8% | 3.5% | 1.4% |
| FCF Yield | 2.9% | 2.8% | 2.9% | 2.6% | 2.3% | 2.5% | 3.7% | 3.5% | 5.0% | 2.3% | 6.0% |
| Buyback Yield | 1.9% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 2.7% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $180M | $183M | $184M | $185M | $188M | $189M | $192M | $194M | $194M | $195M |
Regulatory and cyclical sensitivity
According to current market data, MCO trades at a forward P/E of 26.93, which, when compared to its historical averages and broader financial sector peers, suggests that investors are pricing in a sustained premium for its unique position as a global credit market utility.
The current valuation appears to imply that the market expects the company to maintain its duopoly pricing power despite interest rate volatility. While the PEG ratio of 4.22 indicates a high price relative to near-term growth expectations, this may be justified if the firm successfully captures long-term demand from private credit and climate risk analytics.
Based on reported figures, MCO's ROIC has fluctuated between 3.7% and 6.3% over the last ten quarters, a trend that warrants further investigation given the company's heavy reliance on goodwill and intangible assets acquired through its aggressive M&A strategy in the analytics space.
The relatively modest ROIC figures, when contrasted with the firm's high operating margins, suggest that the capital base is significantly inflated by historical acquisition costs. Investors should monitor whether the integration of recent large-scale acquisitions like RMS can eventually drive a meaningful expansion in returns on invested capital.
As reported in financial statements, the company's DSO has remained elevated, averaging between 81 and 99 days over the past ten quarters, which indicates that the firm's cash conversion cycle is heavily influenced by the timing of large, transactional credit rating fee collections.
The lack of consistent DIO and DPO data suggests that the firm's working capital efficiency is primarily a function of its accounts receivable management rather than inventory or supplier leverage. This reliance on long-dated receivables may expose the firm to liquidity fluctuations if global debt issuance cycles experience sudden, sharp contractions.
Based on recent SEC filings, MCO's debt-to-EBITDA ratio has fluctuated between 7.00 and 11.75, a range that appears elevated compared to traditional industrial peers and suggests that the company utilizes its balance sheet aggressively to fund ongoing share repurchase programs.
While the interest coverage ratio remains generally comfortable, the volatility in debt-to-EBITDA suggests that the firm's leverage profile is sensitive to cyclical downturns in ratings revenue. Investors should monitor whether this debt-heavy capital allocation strategy remains sustainable if the refinancing wall fails to materialize as anticipated.
The Price-to-Book ratio, currently at 19.25, is frequently misapplied to MCO because it fails to account for the firm's asset-light business model and the significant portion of equity that has been eroded by persistent share repurchases and goodwill-heavy acquisitions.
Using P/B to value this business obscures the reality that the firm's true value resides in its regulatory moat and intellectual property rather than its tangible balance sheet. Analysts should instead prioritize EV/EBITDA or FCF yield to better capture the cash-generative nature of the ratings and analytics segments.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying MCO stock.
Moody's Corporation's current P/E ratio is 36.6x. The historical average is 26.7x. This places it at the 82th percentile of its historical range.
Moody's Corporation's current EV/EBITDA is 23.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.5x.
Moody's Corporation's return on equity (ROE) is 62.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 206.5%.
Based on historical data, Moody's Corporation is trading at a P/E of 36.6x. This is at the 82th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Moody's Corporation's current dividend yield is 0.78% with a payout ratio of 28.5%.
Moody's Corporation has 68.2% gross margin and 44.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Moody's Corporation's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.