Is MSCI Inc (MSCI) overvalued?
On Equity Rank's model estimate, MSCI trades 49% above its fair value. MSCI Inc (MSCI) last closed at $641.01; the multi-method model fair value is $431.31.
| Price | Model fair value | Price vs model |
|---|---|---|
| $641.01 | $431.31 | 49% above |
What the answer rests on
- 1 of 8 valuation methods put MSCI's value above its price and 7 put it below, so the methods mostly agree.
- To justify today's price, MSCI's free cash flow would need to grow about 14.2% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 14.8% a year.
- MSCI trades at 35.7 times its last year's earnings, against a median of 23.5 for 9 profitable Financial Data & Analytics companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 9% above to 201% 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 MSCI's fair value · What prices assume · Other companies