Latest Ratios: P/E Ratio 18.7x · EV/EBITDA 10.1x · ROE 26.3%. (2000–2025 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 | $6.3B | $9.2B | $14.5B | $12.3B | $9.3B | $14.8B | $10.0B | $6.5B | $4.7B | $4.2B | $3.2B |
| Enterprise Value | $7.2B | $10.1B | $14.9B | $13.1B | $10.2B | $14.9B | $10.2B | $6.9B | $4.4B | $4.0B | $3.2B |
| P/E Ratio → | 18.71 | 24.50 | 39.25 | 87.00 | 132.07 | 76.85 | 44.70 | 42.99 | 25.78 | 30.49 | 19.77 |
| P/S Ratio | 2.58 | 3.75 | 6.38 | 6.02 | 4.97 | 8.73 | 7.20 | 5.54 | 4.63 | 4.57 | 3.99 |
| P/B Ratio | 5.73 | 7.51 | 8.97 | 9.25 | 7.70 | 10.48 | 7.87 | 6.03 | 5.05 | 5.18 | 4.57 |
| P/FCF | 14.26 | 20.72 | 32.33 | 62.24 | 55.21 | 42.64 | 32.52 | 25.69 | 19.79 | 22.72 | 21.11 |
| P/OCF | 10.70 | 15.55 | 24.53 | 38.81 | 31.20 | 32.99 | 26.03 | 19.55 | 15.00 | 16.67 | 14.90 |
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 | — | 4.13 | 6.56 | 6.43 | 5.47 | 8.76 | 7.35 | 5.84 | 4.34 | 4.43 | 3.98 |
| EV / EBITDA | 10.11 | 14.10 | 22.09 | 31.53 | 30.62 | 36.52 | 28.78 | 22.42 | 14.16 | 15.48 | 12.63 |
| EV / EBIT | 13.76 | 18.75 | 27.56 | 56.18 | 64.39 | 57.45 | 34.71 | 33.25 | 18.85 | 23.80 | 14.03 |
| EV / FCF | — | 22.83 | 33.23 | 66.41 | 60.84 | 42.78 | 33.19 | 27.08 | 18.53 | 22.02 | 21.05 |
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 | 61.0% | 61.0% | 60.6% | 58.6% | 58.3% | 58.9% | 60.0% | 59.0% | 59.7% | 57.6% | 56.9% |
| Operating Margin | 21.5% | 21.5% | 21.3% | 11.3% | 9.0% | 15.1% | 15.5% | 16.1% | 21.2% | 18.6% | 22.6% |
| Net Profit Margin | 15.3% | 15.3% | 16.3% | 6.9% | 3.8% | 11.4% | 16.1% | 12.9% | 17.9% | 15.0% | 20.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 26.3% | 26.3% | 25.1% | 11.1% | 5.4% | 14.4% | 19.0% | 15.1% | 21.0% | 18.2% | 24.1% |
| ROA | 10.5% | 10.5% | 10.6% | 4.1% | 2.2% | 7.0% | 8.8% | 7.9% | 12.8% | 9.9% | 13.5% |
| ROIC | 15.3% | 15.3% | 14.5% | 6.9% | 5.6% | 10.0% | 8.8% | 10.2% | 16.3% | 13.2% | 16.7% |
| ROCE | 20.6% | 20.6% | 19.0% | 9.0% | 7.2% | 12.4% | 10.9% | 12.8% | 19.9% | 15.9% | 20.3% |
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 | 1.15 | 1.15 | 0.56 | 0.87 | 1.10 | 0.38 | 0.49 | 0.63 | 0.07 | 0.22 | 0.36 |
| Debt / EBITDA | 1.96 | 1.96 | 1.34 | 2.79 | 3.96 | 1.30 | 1.77 | 2.24 | 0.22 | 0.69 | 0.99 |
| Net Debt / Equity | — | 0.76 | 0.25 | 0.62 | 0.78 | 0.03 | 0.16 | 0.33 | -0.32 | -0.16 | -0.01 |
| Net Debt / EBITDA | 1.30 | 1.30 | 0.59 | 1.98 | 2.83 | 0.12 | 0.58 | 1.15 | -0.96 | -0.49 | -0.04 |
| Debt / FCF | — | 2.11 | 0.89 | 4.17 | 5.63 | 0.14 | 0.66 | 1.39 | -1.25 | -0.70 | -0.06 |
| Interest Coverage | 13.47 | 13.47 | 10.85 | 4.51 | 5.60 | 29.79 | 26.50 | 23.82 | 130.39 | 30.87 | 150.93 |
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 | 0.99 | 0.99 | 1.05 | 0.93 | 0.92 | 1.13 | 1.17 | 1.22 | 1.66 | 1.64 | 1.60 |
| Quick Ratio | 0.99 | 0.99 | 1.05 | 0.93 | 0.92 | 1.13 | 1.17 | 1.22 | 1.66 | 1.64 | 1.60 |
| Cash Ratio | 0.45 | 0.45 | 0.52 | 0.38 | 0.43 | 0.62 | 0.67 | 0.67 | 1.02 | 0.95 | 0.88 |
| Asset Turnover | — | 0.68 | 0.64 | 0.60 | 0.54 | 0.59 | 0.52 | 0.50 | 0.70 | 0.65 | 0.59 |
| 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 | 1.1% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 20.6% | 20.6% | 18.7% | 45.3% | 87.2% | 28.0% | 23.0% | 31.4% | 23.3% | 28.7% | 23.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.3% | 4.1% | 2.5% | 1.1% | 0.8% | 1.3% | 2.2% | 2.3% | 3.9% | 3.3% | 5.1% |
| FCF Yield | 7.0% | 4.8% | 3.1% | 1.6% | 1.8% | 2.3% | 3.1% | 3.9% | 5.1% | 4.4% | 4.7% |
| Buyback Yield | 12.5% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 13.6% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $42M | $43M | $43M | $43M | $43M | $43M | $43M | $43M | $43M | $43M |
Rising leverage and goodwill
According to current market data, Morningstar trades at a forward P/E of 12.97, which appears to discount the company's growth prospects relative to higher-multiple peers like MSCI or Moody's, suggesting investors remain skeptical of the firm's ability to sustain long-term margin expansion in its core research segments.
The current P/E of 17.44 and EV/EBITDA of 9.51 indicate that the market is pricing Morningstar as a mature, slower-growth entity rather than a high-growth data provider. This valuation gap compared to peers like FactSet may imply that the market is discounting the company's reliance on cyclical credit ratings and asset-based fees, which are more sensitive to interest rate environments than the pure-play SaaS models of its competitors.
Based on reported figures, Morningstar's ROIC has remained in a narrow range between 2.8% and 4.9% over the last ten quarters, indicating that the company is struggling to generate returns on invested capital that exceed its cost of capital, largely due to the heavy weight of goodwill on the balance sheet.
The persistent low ROIC suggests that the aggressive acquisition strategy, while expanding the company's footprint, has not yet translated into superior capital efficiency. Investors should monitor whether the integration of recent acquisitions can eventually drive higher returns, or if the current capital allocation strategy will continue to dilute the overall return profile of the business.
As reported in financial statements, Morningstar's asset turnover ratio has hovered consistently around 0.16 to 0.18 over the past ten quarters, reflecting a business model that is inherently capital-intensive and reliant on significant intangible assets rather than physical inventory or high-velocity asset utilization.
The low asset turnover is a direct consequence of the company's strategy of acquiring specialized data firms, which inflates the asset base with goodwill and other intangibles. This metric highlights that Morningstar's efficiency is driven more by the pricing power of its research and data platforms than by the rapid turnover of its underlying asset base.
According to recent quarterly filings, Morningstar's debt-to-equity ratio has climbed to 1.87 in 2026Q1 from 0.87 in 2023Q4, signaling a significant shift toward debt-funded growth that has increased the company's financial risk profile in a period of elevated interest rates and market volatility.
The rise in debt-to-EBITDA to 9.18 suggests that the company's ability to service its obligations is becoming more constrained, particularly as interest coverage ratios have shown volatility. This trend warrants further investigation into whether the company's cash flow generation can support this increased leverage without necessitating further equity dilution or a reduction in strategic investment.
The P/E ratio is frequently misapplied to Morningstar because it fails to account for the significant non-cash charges and stock-based compensation that distort GAAP earnings, often leading analysts to underestimate the company's true cash-generating capacity and the underlying quality of its recurring subscription revenue streams.
Investors should prioritize EV/EBITDA or P/FCF over P/E to better assess the company's operational performance, as these metrics normalize for the capital structure and non-cash expenses. Relying on P/E obscures the impact of the company's aggressive reinvestment cycle and the accounting nuances inherent in its multi-year subscription contracts.
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying MORN stock.
Morningstar, Inc.'s current P/E ratio is 18.7x. The historical average is 42.7x.
Morningstar, Inc.'s current EV/EBITDA is 10.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.0x.
Morningstar, Inc.'s return on equity (ROE) is 26.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 10.1%.
Based on historical data, Morningstar, Inc. is trading at a P/E of 18.7x. Compare with industry peers and growth rates for a complete picture.
Morningstar, Inc.'s current dividend yield is 1.10% with a payout ratio of 20.6%.
Morningstar, Inc. has 61.0% gross margin and 21.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Morningstar, Inc.'s Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.