A comparative valuation analysis of credit-rating giants S&P Global and Moody's shows S&P Global trading at a deeper discount across most metrics, even as its financial performance outpaces its rival.
S&P Global’s stock price of $434.01 implies a market capitalization of $128.35 billion, compared with Moody’s $514.19 share price and $88.56 billion valuation. The valuation gap is reflected in key ratios: S&P Global’s trailing price-to-earnings ratio stands at 25.9x versus Moody’s 31.7x, while its forward P/E is 24.8x against Moody’s 30.0x. Enterprise value to EBITDA also favors S&P Global at 17.7x compared with 23.4x for Moody’s.
Free cash flow yield further underscores the valuation disparity. S&P Global’s FCF yield of 4.4% exceeds Moody’s 3.3%, while fair-value models suggest S&P Global offers 10% upside against Moody’s 8.4% downside. Debt levels also tilt in S&P Global’s favor, with a debt-to-equity ratio of 50.0%, roughly one-fifth of Moody’s 251.9%.
Revenue performance highlights S&P Global’s operational strength. The company reported $15.34 billion in fiscal 2025 revenue, nearly double Moody’s $7.72 billion. Over the past five years, S&P Global’s revenue compound annual growth rate reached 15.6%, outpacing Moody’s 7.5%, a gap attributed in part to successful integration of IHS Markit. Near-term earnings-per-share growth is projected at 26.2% for S&P Global versus 33.8% for Moody’s.
Despite these advantages, S&P Global’s shares have declined 15.9% over the past year, raising questions about whether the stock represents a value trap amid integration costs or slower index-linked revenue growth. Moody’s, by contrast, is described as "priced for perfection," with limited margin for error given its premium valuation and high leverage. Moody’s outsized return on equity of 80.2% is framed as a function of financial leverage rather than operational efficiency, contrasting with S&P Global’s more conservative capital structure.
