Moody's stock valuation faces scrutiny after a multi-year period of strong share price gains. The stock recently closed at $538.92, following significant returns over the last one, three, and five-year periods.
The Excess Returns model, one valuation approach, suggests Moody's is overvalued. This analysis estimates the stock's intrinsic value at approximately $353.32 per share, substantially below the recent market price.
The model calculates this valuation by considering analyst estimates for future earnings and the return generated on shareholders' capital.