How Does This Credit Data Business Operate?
Moody’s Corporation provides credit ratings, research, and analytical services used by investors and issuers. Its work centers on assessing credit risk and distributing data and insights that support capital markets activity. The company also sells software and analytics tools that help customers monitor risk and make decisions. At roughly USD 78.7 billion in market value, it operates at a scale where recurring information products sit alongside transaction-
Are Profit Margins and Cash Flow Holding Up?
FundamentalsIn 2025 (reported in USD), Moody’s generated revenue of about USD 7.7 billion, alongside EBIT of roughly USD 3.35 billion and net income of about USD 2.46 billion. Revenue grew 8.9% versus the prior year, while trailing profitability remained high, with a 74.44% gross margin feeding into a 42.69% operating margin and a 31.86% net profit margin.
Cash on the balance sheet was about USD 2.38 billion against total debt of roughly USD 95 million. Depreciation and amortization were around USD 480 million, and the company’s cash-flow proxy was about USD 3.16 billion, reflecting EBIT after tax plus depreciation and amortization and minus capital spending, excluding working-capital changes.
Is The Market Overpaying For Growth?
DCF / MultiplesWith the stock at about USD 438.47, the DCF range runs from roughly USD 199 in a weaker outcome through about USD 297 at the central estimate to around USD 402 in a stronger outcome, placing the current price above that range. Headline pricing also sits at 31.95x trailing earnings and 22.04x EV/EBITDA, alongside a 10.18x price-to-sales ratio.
Strong But Priced For Perfection
TakeawayThe price asks for continued growth and disciplined reinvestment. Margins and cash generation need to stay resilient. If growth cools, the valuation can compress quickly. The setup is demanding, even with strong current profitability.