Intrinsic value of Moody's - MCO

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$120.06

  Intrinsic Value

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  Value-price divergence*

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$120.06

 
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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of MCO stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 22.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.41
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.64
  6.47
  6.32
  6.19
  6.07
  5.97
  5.87
  5.78
  5.70
  5.63
  5.57
  5.51
  5.46
  5.42
  5.37
  5.34
  5.30
  5.27
  5.25
  5.22
  5.20
  5.18
Revenue, $m
  3,604
  3,921
  4,251
  4,595
  4,952
  5,323
  5,708
  6,109
  6,526
  6,959
  7,409
  7,878
  8,365
  8,873
  9,403
  9,955
  10,530
  11,131
  11,758
  12,413
  13,097
  13,813
  14,561
  15,343
  16,162
  17,019
  17,917
  18,857
  19,841
  20,873
  21,954
Variable operating expenses, $m
 
  2,253
  2,435
  2,623
  2,819
  3,022
  3,234
  3,454
  3,682
  3,920
  4,167
  4,322
  4,589
  4,868
  5,158
  5,461
  5,777
  6,106
  6,450
  6,810
  7,185
  7,578
  7,988
  8,417
  8,866
  9,337
  9,829
  10,344
  10,885
  11,450
  12,043
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  2,966
  2,253
  2,435
  2,623
  2,819
  3,022
  3,234
  3,454
  3,682
  3,920
  4,167
  4,322
  4,589
  4,868
  5,158
  5,461
  5,777
  6,106
  6,450
  6,810
  7,185
  7,578
  7,988
  8,417
  8,866
  9,337
  9,829
  10,344
  10,885
  11,450
  12,043
Operating income, $m
  639
  1,668
  1,817
  1,972
  2,133
  2,300
  2,474
  2,655
  2,843
  3,039
  3,242
  3,556
  3,776
  4,006
  4,245
  4,494
  4,754
  5,025
  5,308
  5,603
  5,912
  6,235
  6,573
  6,926
  7,296
  7,683
  8,088
  8,512
  8,957
  9,422
  9,910
EBITDA, $m
  766
  1,823
  1,976
  2,136
  2,302
  2,474
  2,653
  2,839
  3,033
  3,234
  3,444
  3,661
  3,888
  4,124
  4,370
  4,627
  4,894
  5,174
  5,465
  5,770
  6,088
  6,420
  6,768
  7,132
  7,512
  7,911
  8,328
  8,765
  9,222
  9,702
  10,204
Interest expense (income), $m
  137
  126
  -6
  4
  15
  26
  38
  51
  63
  76
  90
  105
  119
  135
  151
  168
  185
  204
  223
  243
  263
  285
  308
  332
  356
  382
  410
  438
  468
  499
  532
Earnings before tax, $m
  558
  1,542
  1,823
  1,967
  2,118
  2,274
  2,436
  2,605
  2,780
  2,962
  3,152
  3,452
  3,657
  3,871
  4,094
  4,326
  4,568
  4,821
  5,085
  5,361
  5,649
  5,950
  6,265
  6,595
  6,939
  7,300
  7,678
  8,074
  8,488
  8,923
  9,378
Tax expense, $m
  282
  416
  492
  531
  572
  614
  658
  703
  751
  800
  851
  932
  987
  1,045
  1,105
  1,168
  1,233
  1,302
  1,373
  1,447
  1,525
  1,607
  1,692
  1,781
  1,874
  1,971
  2,073
  2,180
  2,292
  2,409
  2,532
Net income, $m
  267
  1,126
  1,331
  1,436
  1,546
  1,660
  1,778
  1,901
  2,029
  2,162
  2,301
  2,520
  2,669
  2,826
  2,988
  3,158
  3,335
  3,519
  3,712
  3,913
  4,124
  4,344
  4,574
  4,814
  5,066
  5,329
  5,605
  5,894
  6,197
  6,514
  6,846

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,225
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  5,327
  3,374
  3,659
  3,954
  4,261
  4,581
  4,913
  5,257
  5,616
  5,988
  6,376
  6,779
  7,199
  7,636
  8,092
  8,567
  9,062
  9,579
  10,119
  10,682
  11,271
  11,887
  12,531
  13,204
  13,909
  14,647
  15,419
  16,228
  17,075
  17,963
  18,893
Adjusted assets (=assets-cash), $m
  3,102
  3,374
  3,659
  3,954
  4,261
  4,581
  4,913
  5,257
  5,616
  5,988
  6,376
  6,779
  7,199
  7,636
  8,092
  8,567
  9,062
  9,579
  10,119
  10,682
  11,271
  11,887
  12,531
  13,204
  13,909
  14,647
  15,419
  16,228
  17,075
  17,963
  18,893
Revenue / Adjusted assets
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
  1.162
Average production assets, $m
  613
  667
  723
  781
  842
  905
  970
  1,039
  1,109
  1,183
  1,260
  1,339
  1,422
  1,508
  1,598
  1,692
  1,790
  1,892
  1,999
  2,110
  2,227
  2,348
  2,475
  2,608
  2,748
  2,893
  3,046
  3,206
  3,373
  3,548
  3,732
Working capital, $m
  825
  -1,196
  -1,297
  -1,401
  -1,510
  -1,623
  -1,741
  -1,863
  -1,990
  -2,122
  -2,260
  -2,403
  -2,551
  -2,706
  -2,868
  -3,036
  -3,212
  -3,395
  -3,586
  -3,786
  -3,995
  -4,213
  -4,441
  -4,680
  -4,929
  -5,191
  -5,465
  -5,751
  -6,052
  -6,366
  -6,696
Total debt, $m
  3,363
  -152
  104
  370
  646
  934
  1,232
  1,543
  1,865
  2,201
  2,549
  2,912
  3,290
  3,684
  4,094
  4,521
  4,967
  5,432
  5,918
  6,425
  6,955
  7,509
  8,089
  8,695
  9,329
  9,993
  10,688
  11,416
  12,178
  12,977
  13,815
Total liabilities, $m
  6,552
  3,037
  3,293
  3,559
  3,835
  4,123
  4,421
  4,732
  5,054
  5,390
  5,738
  6,101
  6,479
  6,873
  7,283
  7,710
  8,156
  8,621
  9,107
  9,614
  10,144
  10,698
  11,278
  11,884
  12,518
  13,182
  13,877
  14,605
  15,367
  16,166
  17,004
Total equity, $m
  -1,225
  337
  366
  395
  426
  458
  491
  526
  562
  599
  638
  678
  720
  764
  809
  857
  906
  958
  1,012
  1,068
  1,127
  1,189
  1,253
  1,320
  1,391
  1,465
  1,542
  1,623
  1,707
  1,796
  1,889
Total liabilities and equity, $m
  5,327
  3,374
  3,659
  3,954
  4,261
  4,581
  4,912
  5,258
  5,616
  5,989
  6,376
  6,779
  7,199
  7,637
  8,092
  8,567
  9,062
  9,579
  10,119
  10,682
  11,271
  11,887
  12,531
  13,204
  13,909
  14,647
  15,419
  16,228
  17,074
  17,962
  18,893
Debt-to-equity ratio
  -2.745
  -0.450
  0.280
  0.940
  1.520
  2.040
  2.510
  2.930
  3.320
  3.670
  4.000
  4.300
  4.570
  4.820
  5.060
  5.280
  5.480
  5.670
  5.850
  6.010
  6.170
  6.320
  6.460
  6.580
  6.710
  6.820
  6.930
  7.030
  7.130
  7.220
  7.310
Adjusted equity ratio
  -1.112
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  267
  1,126
  1,331
  1,436
  1,546
  1,660
  1,778
  1,901
  2,029
  2,162
  2,301
  2,520
  2,669
  2,826
  2,988
  3,158
  3,335
  3,519
  3,712
  3,913
  4,124
  4,344
  4,574
  4,814
  5,066
  5,329
  5,605
  5,894
  6,197
  6,514
  6,846
Depreciation, amort., depletion, $m
  127
  155
  159
  164
  169
  174
  179
  184
  190
  196
  202
  105
  112
  119
  126
  133
  141
  149
  157
  166
  175
  185
  195
  205
  216
  228
  240
  252
  266
  279
  294
Funds from operations, $m
  2,176
  1,281
  1,490
  1,600
  1,715
  1,834
  1,957
  2,086
  2,219
  2,358
  2,502
  2,625
  2,781
  2,944
  3,114
  3,291
  3,476
  3,668
  3,869
  4,080
  4,299
  4,528
  4,768
  5,019
  5,282
  5,557
  5,845
  6,146
  6,462
  6,793
  7,140
Change in working capital, $m
  950
  -97
  -101
  -105
  -109
  -113
  -118
  -122
  -127
  -132
  -137
  -143
  -149
  -155
  -161
  -168
  -176
  -183
  -191
  -200
  -209
  -218
  -228
  -239
  -250
  -261
  -274
  -287
  -300
  -315
  -330
Cash from operations, $m
  1,226
  1,385
  1,591
  1,705
  1,824
  1,947
  2,075
  2,208
  2,346
  2,490
  2,640
  2,768
  2,930
  3,099
  3,276
  3,459
  3,651
  3,852
  4,061
  4,279
  4,508
  4,747
  4,997
  5,258
  5,532
  5,818
  6,119
  6,433
  6,762
  7,108
  7,470
Maintenance CAPEX, $m
  0
  -48
  -52
  -57
  -62
  -66
  -71
  -76
  -82
  -87
  -93
  -99
  -105
  -112
  -119
  -126
  -133
  -141
  -149
  -157
  -166
  -175
  -185
  -195
  -205
  -216
  -228
  -240
  -252
  -266
  -279
New CAPEX, $m
  -115
  -54
  -56
  -58
  -61
  -63
  -66
  -68
  -71
  -74
  -77
  -80
  -83
  -86
  -90
  -94
  -98
  -102
  -107
  -111
  -116
  -122
  -127
  -133
  -139
  -146
  -153
  -160
  -167
  -175
  -184
Cash from investing activities, $m
  102
  -102
  -108
  -115
  -123
  -129
  -137
  -144
  -153
  -161
  -170
  -179
  -188
  -198
  -209
  -220
  -231
  -243
  -256
  -268
  -282
  -297
  -312
  -328
  -344
  -362
  -381
  -400
  -419
  -441
  -463
Free cash flow, $m
  1,328
  1,283
  1,482
  1,590
  1,701
  1,817
  1,938
  2,063
  2,194
  2,329
  2,470
  2,589
  2,742
  2,901
  3,067
  3,240
  3,420
  3,608
  3,805
  4,011
  4,225
  4,450
  4,685
  4,930
  5,187
  5,456
  5,738
  6,033
  6,343
  6,667
  7,006
Issuance/(repayment) of debt, $m
  0
  -3,215
  256
  266
  277
  287
  299
  310
  323
  335
  349
  363
  378
  393
  410
  427
  446
  465
  486
  507
  530
  554
  579
  606
  634
  664
  695
  728
  763
  799
  837
Issuance/(repurchase) of shares, $m
  -783
  3,494
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -725
  279
  256
  266
  277
  287
  299
  310
  323
  335
  349
  363
  378
  393
  410
  427
  446
  465
  486
  507
  530
  554
  579
  606
  634
  664
  695
  728
  763
  799
  837
Total cash flow (excl. dividends), $m
  579
  -1,931
  1,738
  1,856
  1,978
  2,105
  2,237
  2,374
  2,516
  2,665
  2,819
  2,952
  3,120
  3,294
  3,477
  3,667
  3,866
  4,074
  4,291
  4,518
  4,755
  5,004
  5,264
  5,536
  5,821
  6,120
  6,433
  6,761
  7,105
  7,466
  7,844
Retained Cash Flow (-), $m
  660
  -3,487
  -28
  -30
  -31
  -32
  -33
  -34
  -36
  -37
  -39
  -40
  -42
  -44
  -46
  -47
  -50
  -52
  -54
  -56
  -59
  -62
  -64
  -67
  -70
  -74
  -77
  -81
  -85
  -89
  -93
Prev. year cash balance distribution, $m
 
  1,925
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  0
  1,709
  1,826
  1,947
  2,073
  2,203
  2,339
  2,480
  2,627
  2,780
  2,912
  3,078
  3,251
  3,431
  3,620
  3,816
  4,022
  4,237
  4,461
  4,696
  4,942
  5,200
  5,469
  5,751
  6,046
  6,356
  6,680
  7,020
  7,377
  7,751
Discount rate, %
 
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.42
  17.24
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
  28.09
  29.49
  30.97
  32.52
PV of cash for distribution, $m
 
  0
  1,458
  1,421
  1,372
  1,311
  1,238
  1,157
  1,067
  973
  875
  769
  673
  579
  491
  409
  335
  269
  212
  163
  123
  91
  65
  46
  31
  21
  13
  8
  5
  3
  2
Current shareholders' claim on cash, %
  100
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

Moody’s Corporation provides credit ratings; and credit, capital markets, and economic related research, data, and analytical tools worldwide. It operates through two segments, Moody’s Investors Service and Moody’s Analytics. The Moody’s Investors Service segment publishes credit ratings on various debt obligations and entities that issue such obligations comprising various corporate and governmental obligations, structured finance securities, and commercial paper programs. This segment provides ratings in approximately 120 countries. Its ratings are disseminated through press releases to the public through print and electronic media, including the Internet and real-time information systems for use by securities traders and investors. As of December 31, 2016, this segment had ratings relationships with approximately 11,000 corporate issuers and approximately 18,000 public finance issuers. It also rated and monitored ratings on approximately 64,000 structured finance obligations. The Moody’s Analytics segment develops products and services that support financial analysis and risk management activities of institutional participants in financial markets; and distributes research and data, such as research on debt issuers, industry studies, and commentary on topical credit related events. This segment also offers economic research, and credit data and analytical tools; software solutions and related risk management services; and outsourced research and analytical services with financial training and certification programs. The company was formerly known as Dun and Bradstreet Company and changed its name to Moody’s Corporation in September 2000. Moody’s Corporation was founded in 1900 and is headquartered in New York, New York.

FINANCIAL RATIOS  of  Moody's (MCO)

Valuation Ratios
P/E Ratio 85.7
Price to Sales 6.4
Price to Book -18.7
Price to Tangible Book
Price to Cash Flow 18.7
Price to Free Cash Flow 20.6
Growth Rates
Sales Growth Rate 3.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 29.2%
Cap. Spend. - 3 Yr. Gr. Rate 22.3%
Financial Strength
Quick Ratio 7
Current Ratio 0
LT Debt to Equity -250%
Total Debt to Equity -274.5%
Interest Coverage 5
Management Effectiveness
Return On Assets 6.4%
Ret/ On Assets - 3 Yr. Avg. 16.9%
Return On Total Capital 10.8%
Ret/ On T. Cap. - 3 Yr. Avg. 29.5%
Return On Equity -29.8%
Return On Equity - 3 Yr. Avg. 349.3%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 71.5%
Gross Margin - 3 Yr. Avg. 71.9%
EBITDA Margin 22.8%
EBITDA Margin - 3 Yr. Avg. 39.6%
Operating Margin 17.7%
Oper. Margin - 3 Yr. Avg. 35.4%
Pre-Tax Margin 15.5%
Pre-Tax Margin - 3 Yr. Avg. 33%
Net Profit Margin 7.4%
Net Profit Margin - 3 Yr. Avg. 21.4%
Effective Tax Rate 50.5%
Eff/ Tax Rate - 3 Yr. Avg. 37.6%
Payout Ratio 106.7%

MCO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MCO stock intrinsic value calculation we used $3604 million for the last fiscal year's total revenue generated by Moody's. The default revenue input number comes from 2016 income statement of Moody's. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our MCO stock valuation model: a) initial revenue growth rate of 8.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.9%, whose default value for MCO is calculated based on our internal credit rating of Moody's, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Moody's.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of MCO stock the variable cost ratio is equal to 57.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for MCO stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.1% for Moody's.

Corporate tax rate of 27% is the nominal tax rate for Moody's. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the MCO stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for MCO are equal to 17%.

Life of production assets of 12.7 years is the average useful life of capital assets used in Moody's operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for MCO is equal to -30.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $-1225 million for Moody's - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 189.664 million for Moody's is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Moody's at the current share price and the inputted number of shares is $22.8 billion.


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COMPANY NEWS

▶ Kansas tax hike hailed as fix doesn't quite balance budget   [Jun-18-17 11:45AM  Associated Press]
▶ Moody's Corporation Prices Senior Unsecured Notes Offering   [Jun-01-17 05:10PM  Business Wire]
▶ China factory activity steady in May, services rebound   [May-30-17 11:21PM  Associated Press]
▶ Asian shares gain, tracking Wall St advance, oil price rally   [May-24-17 11:07PM  Associated Press]
▶ China's Bill Will Have to Be Paid   [10:51PM  Bloomberg]
▶ Moody's China Cut Is Curiously Timed   [12:49AM  Bloomberg]
▶ Why Moody's Downgraded China to A1   [May-23-17 11:30PM  Bloomberg Video]
▶ Ozimek Says Labor Participation Rate Has Room to Improve   [May-22-17 05:57PM  Bloomberg Video]
▶ Trouble Brews in Subprime Auto Loan Market   [04:13PM  Bloomberg Video]
▶ Company News for May 16, 2017   [May-16-17 10:12AM  Zacks]
▶ Moodys to Acquire Bureau van Dijk   [07:00AM  Business Wire]
▶ ETFs with exposure to Moodys Corp. : May 12, 2017   [May-12-17 04:12PM  Capital Cube]
▶ Moody's Calls Australia's Fiscal Strength 'Very High'   [May-09-17 07:08PM  Bloomberg Video]
▶ With Macron win confirmed, European market rally hits pause   [May-08-17 11:55AM  Associated Press]
▶ Berkshire Hathaway Annual Meeting   [May-05-17 11:53AM  Yahoo Finance Video]
▶ Moody's beats Street 1Q forecasts   [07:05AM  Associated Press]
▶ Arlene Isaacs-Lowe to Lead The Moodys Foundation   [Apr-26-17 02:00PM  Business Wire]
▶ Moodys Corporation Declares Quarterly Dividend   [Apr-25-17 05:00PM  Business Wire]
Stock chart of MCO Financial statements of MCO Annual reports of MCO
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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