Is Morgan Stanley (MS) overvalued?
On Equity Rank's model estimate, MS trades close to its fair value (9% above it). Morgan Stanley (MS) last closed at $181.44; the multi-method model fair value is $166.17.
| Price | Model fair value | Price vs model |
|---|---|---|
| $181.44 | $166.17 | 9% above |
What the answer rests on
- 2 of 8 valuation methods put MS's value above its price and 6 put it below, so the methods mostly agree.
- MS trades at 15.4 times its last year's earnings, against a median of 13.3 for 97 profitable Asset Management companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 1% above to 48% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind MS's fair value · What prices assume · Other companies