Msci Inc.

MSCI

Services-Business Services, NEC

Mkt Cap

$39.28B

PE

33.69

Debt

$4.537B

Cash

$519.3M

EV

$43.3B

FCF

$1.251B

Market Cap

$39.28B

P/E Ratio

33.69

Debt

$4.537B

Cash

$519.3M

EV

$43.3B

FCF

$1.251B

Charts data: {"Earnings":[{"time":"2014-12-30","value":283745000},{"time":"2015-12-30","value":223648000},{"time":"2016-12-30","value":260855000},{"time":"2017-12-30","value":303972000},{"time":"2018-12-30","value":507885000},{"time":"2019-12-30","value":563648000},{"time":"2020-12-30","value":601822000},{"time":"2021-12-30","value":725983000},{"time":"2022-12-30","value":870573000},{"time":"2023-12-30","value":1148592000}],"Sales":[{"time":"2014-12-30","value":996680000},{"time":"2015-12-30","value":1075013000},{"time":"2016-12-30","value":1150669000},{"time":"2017-12-30","value":1274172000},{"time":"2018-12-30","value":1433984000},{"time":"2019-12-30","value":1557796000},{"time":"2020-12-30","value":1695390000},{"time":"2021-12-30","value":2043544000},{"time":"2022-12-30","value":2248598000},{"time":"2023-12-30","value":2528920000}],"Net Margins":[{"time":"2014-12-30","value":0.2846901713689449},{"time":"2015-12-30","value":0.20804213530441026},{"time":"2016-12-30","value":0.2266985553621415},{"time":"2017-12-30","value":0.2385643382526064},{"time":"2018-12-30","value":0.35417759193965903},{"time":"2019-12-30","value":0.36182401290027705},{"time":"2020-12-30","value":0.3549755513480674},{"time":"2021-12-30","value":0.35525684790736095},{"time":"2022-12-30","value":0.38716257863788905},{"time":"2023-12-30","value":0.4541828132167091}],"Assets":[{"time":"2014-12-30","value":2894175000},{"time":"2015-12-30","value":3146987000},{"time":"2016-12-30","value":3082578000},{"time":"2017-12-30","value":3275668000},{"time":"2018-12-30","value":3387952000},{"time":"2019-12-30","value":4204439000},{"time":"2020-12-30","value":4198647000},{"time":"2021-12-30","value":5506703000},{"time":"2022-12-30","value":4997535000},{"time":"2023-12-30","value":5518219000}],"Stockholders Equity":[{"time":"2014-12-30","value":1432833000},{"time":"2015-12-30","value":901487000},{"time":"2016-12-30","value":317605000},{"time":"2017-12-30","value":401012000},{"time":"2018-12-30","value":-166494000},{"time":"2019-12-30","value":-76714000},{"time":"2020-12-30","value":-443234000},{"time":"2021-12-30","value":-163467000},{"time":"2022-12-30","value":-1007925000},{"time":"2023-12-30","value":-739764000}],"ROE":[{"time":"2014-12-30","value":0.19803075445638116},{"time":"2015-12-30","value":0.24808788146695404},{"time":"2016-12-30","value":0.821318933895877},{"time":"2017-12-30","value":0.7580122290604769},{"time":"2018-12-30","value":-3.0504702872175575},{"time":"2019-12-30","value":-7.347394217483119},{"time":"2020-12-30","value":-1.357797461386085},{"time":"2021-12-30","value":-4.441159377733732},{"time":"2022-12-30","value":-0.8637279559491033},{"time":"2023-12-30","value":-1.5526465197008776}],"ROA":[{"time":"2014-12-30","value":0.11753193915364482},{"time":"2015-12-30","value":0.12834434969067238},{"time":"2016-12-30","value":0.1583427897039426},{"time":"2017-12-30","value":0.1768152328013706},{"time":"2018-12-30","value":0.20274726442405322},{"time":"2019-12-30","value":0.17973884268507642},{"time":"2020-12-30","value":0.21072597910707902},{"time":"2021-12-30","value":0.1948034967565892},{"time":"2022-12-30","value":0.24164713203609378},{"time":"2023-12-30","value":0.25091592051710887}]}

MSCI Inc., together with its subsidiaries, provides investment decision support tools for the clients to manage their investment processes worldwide. It operates through four segments: Index, Analytics, ESG and Climate, and All Other Private Assets. The Index segment provides indexes for use in various areas of the investment process, including indexed product creation, such as ETFs, mutual funds, annuities, futures, options, structured products, over-the-counter derivatives; performance benchmarking; portfolio construction and rebalancing; and asset allocation, as well as licenses GICS and GICS Direct. The Analytics segment offers risk management, performance attribution and portfolio management content, application, and service that provides an integrated view of risk and return, and an analysis of market, credit, liquidity, and counterparty risk across asset classes; managed services, including consolidation of client portfolio data from various sources, review and reconciliation of input data and results, and customized reporting; and HedgePlatform to measure, evaluate, and monitor the risk of hedge fund investments. The ESG and Climate segment provides products and services that help institutional investors understand how ESG factors impact the long-term risk and return of their portfolio and individual security-level investments; and data, ratings, research, and tools to help investors navigate increasing regulation. The All Other Private Assets segment includes real estate market and transaction data, benchmarks, return-analytics, climate assessments and market insights for funds, investors, and managers; business intelligence to real estate owners, managers, developers, and brokers; and offers investment decision support tools for private capital. It serves asset owners and managers, financial intermediaries, wealth managers, real estate professionals, and corporates. MSCI Inc. was incorporated in 1998 and is headquartered in New York, New York.

Sector

10-Q
9/30/23
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3/31/23
10-K
12/31/22
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3/31/22
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12/31/21
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12/31/19
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3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Msci Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$1.251B	$1.507B	$1.789B	$2.093B	$2.413B	$2.741B	$3.066B	$3.377B	$3.662B	$3.908B	$4.103B	$41.03B
DCF		$1.31B	$1.353B	$1.376B	$1.38B	$1.363B	$1.326B	$1.27B	$1.197B	$1.111B	$1.014B	$10.14B
Value	$22.84B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 22%

Earnings Stability 97%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	21%	23%	24%	35%	36%	35%	36%	39%	45%	45%
ROA	13%	16%	18%	20%	18%	21%	19%	24%	25%	26%
ROE	25%	82%	76%	-310%	-730%	-140%	-440%	-86%	-160%	-180%

What is the average Net Margin?

The average Net Margin over the past 5 years is +37.79%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.65%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +21.34%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.17%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -310.22%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +68.16%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	5.95	5.16	5.60	4.42	4.51	4.27	4.51	4.21	3.75	3.63
Debt Equity	1.75	6.53	5.18	-15.47	-40.04	-7.60	-25.46	-4.52	-6.15	-6.97
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.63.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.11.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	12%	12%	14%	12%	0.72%
Net Income	24%	18%	24%	32%	2.8%
Stockholders Equity	-	-	-	-	32%
FCF	17%	16%	15%	12%	-0.83%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +12.02%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.72%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +17.73%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +2.84%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +34.75%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +31.67%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +15.81%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -0.83%.