Moody's Corporation (MCO) Financial Ratios
28 years of historical data (1998–2025) · Financial Services · Financial - Data & Stock Exchanges
EV/EBITDA
↓
21.57
↓-18% vs avg
5yr avg: 26.35
30Y Low6.0·High29.7
P/FCF
↓
31.03
↓-19% vs avg
5yr avg: 38.15
30Y Low10.5·High75.7
P/B Ratio
↓
19.28
↓-12% vs avg
5yr avg: 22.01
30Y Low19.1·High120.4
ROE
↓
62.0%
-2% vs avg
5yr avg: 63.0%
30Y Low49%·High484%
Debt/EBITDA
↓
1.87
↓-28% vs avg
5yr avg: 2.59
30Y Low0.1·High3.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
MCO Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Moody's Corporation trades at 33.0x earnings, 15% below its 5-year average of 39.0x, sitting at the 75th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.6x, the stock trades at a premium of 143%. On a free-cash-flow basis, the stock trades at 31.0x P/FCF, 19% below the 5-year average of 38.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $79.9B | $91.9B | $86.5B | $71.9B | $51.5B | $73.4B | $54.9B | $45.5B | $27.2B | $28.7B | $18.4B |
| Enterprise Value | $84.9B | $96.9B | $91.8B | $77.1B | $57.6B | $79.6B | $59.3B | $49.8B | $31.2B | $33.1B | $19.7B |
| P/E Ratio → | 32.97 | 37.37 | 42.04 | 44.74 | 37.45 | 33.16 | 30.91 | 32.00 | 20.78 | 28.66 | 69.32 |
| P/S Ratio | 10.35 | 11.91 | 12.20 | 12.15 | 9.41 | 11.80 | 10.23 | 9.42 | 6.13 | 6.82 | 5.11 |
| P/B Ratio | 19.28 | 21.86 | 23.20 | 20.67 | 19.14 | 25.17 | 31.16 | 54.35 | 41.50 | — | — |
| P/FCF | 31.03 | 35.69 | 34.31 | 38.23 | 43.21 | 39.33 | 26.89 | 28.32 | 19.86 | 43.17 | 16.58 |
| P/OCF | 27.54 | 31.68 | 30.47 | 33.41 | 34.91 | 36.60 | 25.60 | 27.16 | 18.63 | 38.35 | 15.02 |
P/E links to full P/E history page with 30-year chart
MCO EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Moody's Corporation's enterprise value stands at 21.6x EBITDA, 18% below its 5-year average of 26.3x. The Financial Services sector median is 11.4x, placing the stock at a 89% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 12.55 | 12.95 | 13.04 | 10.53 | 12.79 | 11.04 | 10.31 | 7.03 | 7.88 | 5.47 |
| EV / EBITDA | 21.57 | 24.62 | 26.99 | 29.74 | 24.72 | 25.65 | 22.23 | 21.89 | 14.74 | 16.55 | 12.02 |
| EV / EBIT | 24.56 | 28.04 | 31.63 | 36.02 | 29.13 | 26.54 | 24.09 | 24.42 | 16.57 | 16.55 | 27.78 |
| EV / FCF | — | 37.62 | 36.42 | 41.04 | 48.33 | 42.63 | 29.02 | 31.02 | 22.77 | 49.90 | 17.76 |
MCO Profitability
Margins and return-on-capital ratios measuring operating efficiency
Moody's Corporation earns an operating margin of 44.8%, significantly above the Financial Services sector average of 20.3%. Operating margins have expanded from 37.5% to 44.8% over the past 3 years, signaling improving operational efficiency. Return on equity of 62.0% is exceptionally high — well above the sector median of 9.0%. ROIC of 22.5% represents excellent returns on invested capital versus a sector median of 5.5%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.2% | 68.2% | 66.4% | 65.1% | 64.4% | 69.5% | 68.4% | 67.1% | 68.8% | 68.3% | 69.1% |
| Operating Margin | 44.8% | 44.8% | 41.9% | 37.5% | 36.5% | 45.7% | 45.6% | 43.0% | 43.3% | 43.8% | 42.0% |
| Net Profit Margin | 31.9% | 31.9% | 29.0% | 27.2% | 25.1% | 35.6% | 33.1% | 29.4% | 29.5% | 23.8% | 7.4% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 62.0% | 62.0% | 57.1% | 52.1% | 49.0% | 94.6% | 136.8% | 190.5% | 484.1% | — | — |
| ROA | 15.7% | 15.7% | 13.7% | 11.1% | 9.5% | 16.3% | 15.7% | 14.4% | 14.4% | 14.4% | 5.1% |
| ROIC | 22.5% | 22.5% | 19.9% | 15.5% | 14.0% | 21.8% | 23.4% | 23.4% | 24.6% | 35.6% | 42.2% |
| ROCE | 27.9% | 27.9% | 24.7% | 18.4% | 16.5% | 25.4% | 26.4% | 26.3% | 27.6% | 39.1% | 44.5% |
MCO Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Moody's Corporation carries a Debt/EBITDA ratio of 1.9x, which is manageable (56% below the sector average of 4.3x). Net debt stands at $5.0B ($7.4B total debt minus $2.4B cash). Interest coverage of 18.3x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.75 | 1.75 | 2.08 | 2.13 | 2.92 | 2.73 | 3.94 | 7.35 | 8.65 | — | — |
| Debt / EBITDA | 1.87 | 1.87 | 2.28 | 2.86 | 3.38 | 2.57 | 2.60 | 2.71 | 2.68 | 2.77 | 2.05 |
| Net Debt / Equity | — | 1.18 | 1.43 | 1.52 | 2.27 | 2.11 | 2.47 | 5.16 | 6.08 | — | — |
| Net Debt / EBITDA | 1.26 | 1.26 | 1.57 | 2.04 | 2.62 | 1.99 | 1.63 | 1.90 | 1.89 | 2.23 | 0.80 |
| Debt / FCF | — | 1.93 | 2.12 | 2.81 | 5.12 | 3.30 | 2.13 | 2.69 | 2.91 | 6.73 | 1.18 |
| Interest Coverage | 18.28 | 18.28 | 14.23 | 10.35 | 9.15 | 12.34 | 10.61 | 8.87 | 8.85 | 9.28 | 4.66 |
MCO Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.74x means Moody's Corporation can comfortably meet its short-term obligations, though there is limited excess liquidity.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.74 | 1.74 | 1.43 | 1.69 | 1.72 | 1.61 | 2.03 | 1.92 | 1.61 | 1.24 | 1.34 |
| Quick Ratio | 1.74 | 1.74 | 1.43 | 1.69 | 1.72 | 1.61 | 2.03 | 1.92 | 1.61 | 1.24 | 1.34 |
| Cash Ratio | 0.80 | 0.80 | 0.67 | 0.85 | 0.74 | 0.73 | 1.17 | 0.96 | 0.80 | 0.52 | 0.84 |
| Asset Turnover | — | 0.49 | 0.46 | 0.40 | 0.38 | 0.42 | 0.43 | 0.47 | 0.47 | 0.49 | 0.68 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
MCO Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Moody's Corporation returns 3.0% to shareholders annually — split between a 0.9% dividend yield and 2.1% buyback yield. The payout ratio of 28.5% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.9% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 28.5% | 28.5% | 30.1% | 35.1% | 37.5% | 20.9% | 23.6% | 26.6% | 25.7% | 29.0% | 106.9% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.0% | 2.7% | 2.4% | 2.2% | 2.7% | 3.0% | 3.2% | 3.1% | 4.8% | 3.5% | 1.4% |
| FCF Yield | 3.2% | 2.8% | 2.9% | 2.6% | 2.3% | 2.5% | 3.7% | 3.5% | 5.0% | 2.3% | 6.0% |
| Buyback Yield | 2.1% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 3.0% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $180M | $183M | $184M | $185M | $188M | $189M | $192M | $194M | $194M | $195M |
Peer Comparison
Compare MCO with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 MCOYou | $80B | 33.0 | 21.6 | 31.0 | 68.2% | 44.8% | 62.0% | 22.5% | 1.9 |
 SPGI | $122B | 28.0 | 17.5 | 22.3 | 70.2% | 42.2% | 12.1% | 9.7% | 1.9 |
 FDS | $8B | 14.2 | 10.1 | 13.3 | 52.7% | 32.2% | 29.1% | 15.5% | 1.7 |
 MSCI | $42B | 37.4 | 24.9 | 27.3 | 82.4% | 54.7% | — | 34.9% | 3.3 |
 ICE | $76B | 23.2 | 14.8 | 17.7 | 61.9% | 38.7% | 11.7% | 7.5% | 3.1 |
 VRSK | $23B | 26.8 | 15.3 | 19.1 | 67.3% | 44.6% | 437.9% | 33.0% | 3.0 |
 TRI | $34B | 23.1 | 12.3 | 16.7 | 75.8% | 26.6% | 12.6% | 11.2% | 0.7 |
 BLK | $174B | 29.6 | 23.0 | 46.3 | 55.5% | 29.1% | 10.0% | 7.5% | 1.9 |
 GS | $348B | 21.4 | 33.0 | — | 47.5% | 17.5% | 13.9% | 2.2% | 25.4 |
 JPM | $909B | 16.2 | 18.5 | 9.0 | 59.9% | 26.0% | 16.1% | 4.5% | 11.6 |
 BAC | $424B | 14.7 | 14.0 | 33.6 | 56.1% | 19.7% | 10.2% | 3.5% | 9.1 |
| Financial Services Median | — | 13.6 | 11.4 | 11.1 | 64.1% | 20.3% | 9.0% | 5.5% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 28 years · Updated daily
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MCO — Frequently Asked Questions
Quick answers to the most common questions about buying MCO stock.
What is Moody's Corporation's P/E ratio?
Moody's Corporation's current P/E ratio is 33.0x. The historical average is 26.7x. This places it at the 75th percentile of its historical range.
What is Moody's Corporation's EV/EBITDA?
Moody's Corporation's current EV/EBITDA is 21.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.5x.
What is Moody's Corporation's ROE?
Moody's Corporation's return on equity (ROE) is 62.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 206.5%.
Is MCO stock overvalued?
Based on historical data, Moody's Corporation is trading at a P/E of 33.0x. This is at the 75th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Moody's Corporation's dividend yield?
Moody's Corporation's current dividend yield is 0.86% with a payout ratio of 28.5%.
What are Moody's Corporation's profit margins?
Moody's Corporation has 68.2% gross margin and 44.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Moody's Corporation have?
Moody's Corporation's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.