Intrinsic value of S&P Global - SPGI

Previous Close

$155.15

  Intrinsic Value

$150.79

stock screener

  Rating & Target

hold

-3%

  Value-price divergence*

0%

Previous close

$155.15

 
Intrinsic value

$150.79

 
Up/down potential

-3%

 
Rating

hold

 
Value-price divergence*

0%

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

We calculate the intrinsic value of SPGI 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 40.0

 

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, %
  6.55
  8.40
  8.06
  7.75
  7.48
  7.23
  7.01
  6.81
  6.63
  6.46
  6.32
  6.19
  6.07
  5.96
  5.86
  5.78
  5.70
  5.63
  5.57
  5.51
  5.46
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.20
  5.18
  5.16
Revenue, $m
  5,661
  6,137
  6,631
  7,145
  7,680
  8,235
  8,812
  9,412
  10,036
  10,684
  11,359
  12,062
  12,794
  13,556
  14,351
  15,180
  16,045
  16,949
  17,892
  18,878
  19,909
  20,987
  22,114
  23,294
  24,529
  25,822
  27,176
  28,594
  30,081
  31,638
  33,271
Variable operating expenses, $m
 
  3,896
  4,187
  4,489
  4,802
  5,128
  5,467
  5,819
  6,185
  6,566
  6,962
  7,079
  7,509
  7,956
  8,423
  8,909
  9,417
  9,947
  10,501
  11,080
  11,685
  12,317
  12,979
  13,671
  14,396
  15,155
  15,950
  16,782
  17,654
  18,569
  19,527
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
  2,292
  3,896
  4,187
  4,489
  4,802
  5,128
  5,467
  5,819
  6,185
  6,566
  6,962
  7,079
  7,509
  7,956
  8,423
  8,909
  9,417
  9,947
  10,501
  11,080
  11,685
  12,317
  12,979
  13,671
  14,396
  15,155
  15,950
  16,782
  17,654
  18,569
  19,527
Operating income, $m
  3,369
  2,240
  2,444
  2,657
  2,878
  3,107
  3,345
  3,593
  3,851
  4,119
  4,397
  4,983
  5,285
  5,600
  5,928
  6,271
  6,628
  7,001
  7,391
  7,798
  8,224
  8,669
  9,135
  9,623
  10,133
  10,667
  11,226
  11,812
  12,426
  13,069
  13,744
EBITDA, $m
  3,550
  2,609
  2,820
  3,038
  3,265
  3,502
  3,747
  4,002
  4,267
  4,543
  4,830
  5,129
  5,440
  5,764
  6,102
  6,455
  6,823
  7,207
  7,608
  8,027
  8,465
  8,924
  9,403
  9,905
  10,430
  10,980
  11,555
  12,159
  12,790
  13,453
  14,147
Interest expense (income), $m
  150
  150
  168
  197
  227
  257
  290
  323
  358
  394
  431
  470
  511
  553
  598
  644
  692
  742
  794
  849
  906
  965
  1,028
  1,093
  1,161
  1,233
  1,308
  1,386
  1,468
  1,554
  1,644
Earnings before tax, $m
  3,188
  2,090
  2,276
  2,460
  2,651
  2,849
  3,056
  3,270
  3,493
  3,725
  3,966
  4,512
  4,774
  5,046
  5,331
  5,627
  5,937
  6,260
  6,597
  6,950
  7,319
  7,704
  8,107
  8,530
  8,971
  9,434
  9,919
  10,426
  10,958
  11,515
  12,100
Tax expense, $m
  960
  564
  615
  664
  716
  769
  825
  883
  943
  1,006
  1,071
  1,218
  1,289
  1,363
  1,439
  1,519
  1,603
  1,690
  1,781
  1,876
  1,976
  2,080
  2,189
  2,303
  2,422
  2,547
  2,678
  2,815
  2,959
  3,109
  3,267
Net income, $m
  2,106
  1,526
  1,662
  1,796
  1,935
  2,080
  2,231
  2,387
  2,550
  2,719
  2,895
  3,294
  3,485
  3,684
  3,891
  4,108
  4,334
  4,570
  4,816
  5,073
  5,343
  5,624
  5,918
  6,227
  6,549
  6,887
  7,241
  7,611
  7,999
  8,406
  8,833

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,400
  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
  8,669
  9,397
  10,155
  10,942
  11,761
  12,611
  13,495
  14,413
  15,368
  16,362
  17,395
  18,471
  19,592
  20,760
  21,977
  23,247
  24,572
  25,955
  27,400
  28,910
  30,488
  32,139
  33,865
  35,672
  37,563
  39,543
  41,617
  43,789
  46,065
  48,450
  50,950
Adjusted assets (=assets-cash), $m
  6,269
  9,397
  10,155
  10,942
  11,761
  12,611
  13,495
  14,413
  15,368
  16,362
  17,395
  18,471
  19,592
  20,760
  21,977
  23,247
  24,572
  25,955
  27,400
  28,910
  30,488
  32,139
  33,865
  35,672
  37,563
  39,543
  41,617
  43,789
  46,065
  48,450
  50,950
Revenue / Adjusted assets
  0.903
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
  0.653
Average production assets, $m
  1,785
  1,933
  2,089
  2,251
  2,419
  2,594
  2,776
  2,965
  3,161
  3,366
  3,578
  3,799
  4,030
  4,270
  4,521
  4,782
  5,054
  5,339
  5,636
  5,947
  6,271
  6,611
  6,966
  7,338
  7,727
  8,134
  8,560
  9,007
  9,475
  9,966
  10,480
Working capital, $m
  1,060
  -614
  -663
  -715
  -768
  -823
  -881
  -941
  -1,004
  -1,068
  -1,136
  -1,206
  -1,279
  -1,356
  -1,435
  -1,518
  -1,605
  -1,695
  -1,789
  -1,888
  -1,991
  -2,099
  -2,211
  -2,329
  -2,453
  -2,582
  -2,718
  -2,859
  -3,008
  -3,164
  -3,327
Total debt, $m
  3,564
  4,003
  4,684
  5,393
  6,130
  6,895
  7,690
  8,517
  9,377
  10,271
  11,201
  12,169
  13,178
  14,229
  15,324
  16,467
  17,660
  18,905
  20,205
  21,564
  22,985
  24,470
  26,024
  27,650
  29,352
  31,134
  33,000
  34,955
  37,004
  39,150
  41,400
Total liabilities, $m
  8,019
  8,458
  9,139
  9,848
  10,585
  11,350
  12,145
  12,972
  13,832
  14,726
  15,656
  16,624
  17,633
  18,684
  19,779
  20,922
  22,115
  23,360
  24,660
  26,019
  27,440
  28,925
  30,479
  32,105
  33,807
  35,589
  37,455
  39,410
  41,459
  43,605
  45,855
Total equity, $m
  650
  940
  1,015
  1,094
  1,176
  1,261
  1,349
  1,441
  1,537
  1,636
  1,740
  1,847
  1,959
  2,076
  2,198
  2,325
  2,457
  2,596
  2,740
  2,891
  3,049
  3,214
  3,387
  3,567
  3,756
  3,954
  4,162
  4,379
  4,607
  4,845
  5,095
Total liabilities and equity, $m
  8,669
  9,398
  10,154
  10,942
  11,761
  12,611
  13,494
  14,413
  15,369
  16,362
  17,396
  18,471
  19,592
  20,760
  21,977
  23,247
  24,572
  25,956
  27,400
  28,910
  30,489
  32,139
  33,866
  35,672
  37,563
  39,543
  41,617
  43,789
  46,066
  48,450
  50,950
Debt-to-equity ratio
  5.483
  4.260
  4.610
  4.930
  5.210
  5.470
  5.700
  5.910
  6.100
  6.280
  6.440
  6.590
  6.730
  6.850
  6.970
  7.080
  7.190
  7.280
  7.370
  7.460
  7.540
  7.610
  7.680
  7.750
  7.810
  7.870
  7.930
  7.980
  8.030
  8.080
  8.130
Adjusted equity ratio
  -0.279
  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
  2,106
  1,526
  1,662
  1,796
  1,935
  2,080
  2,231
  2,387
  2,550
  2,719
  2,895
  3,294
  3,485
  3,684
  3,891
  4,108
  4,334
  4,570
  4,816
  5,073
  5,343
  5,624
  5,918
  6,227
  6,549
  6,887
  7,241
  7,611
  7,999
  8,406
  8,833
Depreciation, amort., depletion, $m
  181
  369
  375
  381
  388
  395
  402
  409
  416
  424
  433
  146
  155
  164
  174
  184
  194
  205
  217
  229
  241
  254
  268
  282
  297
  313
  329
  346
  364
  383
  403
Funds from operations, $m
  1,426
  1,895
  2,037
  2,177
  2,323
  2,475
  2,632
  2,796
  2,966
  3,143
  3,328
  3,440
  3,640
  3,848
  4,065
  4,292
  4,528
  4,775
  5,033
  5,302
  5,584
  5,878
  6,186
  6,509
  6,846
  7,200
  7,570
  7,957
  8,364
  8,789
  9,236
Change in working capital, $m
  -38
  -48
  -49
  -51
  -53
  -56
  -58
  -60
  -62
  -65
  -67
  -70
  -73
  -76
  -79
  -83
  -87
  -90
  -94
  -99
  -103
  -108
  -113
  -118
  -123
  -129
  -135
  -142
  -149
  -156
  -163
Cash from operations, $m
  1,464
  1,943
  2,086
  2,229
  2,377
  2,530
  2,690
  2,856
  3,029
  3,208
  3,395
  3,510
  3,713
  3,924
  4,145
  4,375
  4,615
  4,865
  5,127
  5,401
  5,687
  5,986
  6,299
  6,627
  6,970
  7,329
  7,705
  8,099
  8,512
  8,945
  9,399
Maintenance CAPEX, $m
  0
  -69
  -74
  -80
  -87
  -93
  -100
  -107
  -114
  -122
  -129
  -138
  -146
  -155
  -164
  -174
  -184
  -194
  -205
  -217
  -229
  -241
  -254
  -268
  -282
  -297
  -313
  -329
  -346
  -364
  -383
New CAPEX, $m
  -115
  -149
  -156
  -162
  -168
  -175
  -182
  -189
  -196
  -204
  -213
  -221
  -231
  -240
  -250
  -261
  -273
  -285
  -297
  -311
  -325
  -339
  -355
  -372
  -389
  -407
  -427
  -447
  -468
  -491
  -514
Cash from investing activities, $m
  1,205
  -218
  -230
  -242
  -255
  -268
  -282
  -296
  -310
  -326
  -342
  -359
  -377
  -395
  -414
  -435
  -457
  -479
  -502
  -528
  -554
  -580
  -609
  -640
  -671
  -704
  -740
  -776
  -814
  -855
  -897
Free cash flow, $m
  2,669
  1,726
  1,856
  1,986
  2,122
  2,262
  2,408
  2,560
  2,718
  2,882
  3,053
  3,151
  3,336
  3,529
  3,730
  3,940
  4,158
  4,386
  4,625
  4,873
  5,133
  5,405
  5,690
  5,987
  6,299
  6,624
  6,966
  7,323
  7,698
  8,090
  8,501
Issuance/(repayment) of debt, $m
  -71
  439
  682
  709
  736
  765
  795
  827
  860
  894
  930
  968
  1,009
  1,051
  1,096
  1,143
  1,193
  1,245
  1,300
  1,359
  1,420
  1,485
  1,554
  1,626
  1,702
  1,782
  1,866
  1,955
  2,048
  2,147
  2,250
Issuance/(repurchase) of shares, $m
  -1,035
  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 from financing (excl. dividends), $m  
  -1,220
  439
  682
  709
  736
  765
  795
  827
  860
  894
  930
  968
  1,009
  1,051
  1,096
  1,143
  1,193
  1,245
  1,300
  1,359
  1,420
  1,485
  1,554
  1,626
  1,702
  1,782
  1,866
  1,955
  2,048
  2,147
  2,250
Total cash flow (excl. dividends), $m
  1,291
  2,164
  2,538
  2,695
  2,858
  3,028
  3,204
  3,387
  3,578
  3,776
  3,983
  4,120
  4,345
  4,580
  4,826
  5,082
  5,351
  5,631
  5,925
  6,232
  6,554
  6,891
  7,244
  7,613
  8,001
  8,407
  8,832
  9,278
  9,746
  10,237
  10,752
Retained Cash Flow (-), $m
  -456
  -290
  -76
  -79
  -82
  -85
  -88
  -92
  -96
  -99
  -103
  -108
  -112
  -117
  -122
  -127
  -133
  -138
  -144
  -151
  -158
  -165
  -173
  -181
  -189
  -198
  -207
  -217
  -228
  -239
  -250
Prev. year cash balance distribution, $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 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
 
  1,875
  2,462
  2,616
  2,776
  2,943
  3,115
  3,295
  3,482
  3,677
  3,880
  4,012
  4,233
  4,463
  4,704
  4,955
  5,218
  5,493
  5,780
  6,081
  6,396
  6,726
  7,071
  7,433
  7,811
  8,209
  8,625
  9,061
  9,519
  9,998
  10,502
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,797
  2,254
  2,277
  2,286
  2,281
  2,261
  2,226
  2,177
  2,112
  2,034
  1,905
  1,806
  1,697
  1,579
  1,455
  1,326
  1,195
  1,065
  936
  813
  696
  587
  487
  398
  319
  252
  194
  147
  109
  79
Current shareholders' claim on cash, %
  100
  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
  100.0

S&P Global Inc. provides independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide. It operates through three segments: Ratings, Market and Commodities Intelligence, and S&P Dow Jones Indices. The Ratings segment provides credit ratings, research and analytics, information, and benchmarks to the investors, issuers, and other market participants. The Market and Commodities Intelligence segment offers multi-asset-class data; and research and analytical capabilities, which integrate cross-asset analytics and desktop services, and deliver access to information, data, analytic services, and pricing and quality benchmarks to its customers in the commodity and energy markets. The S&P Dow Jones Indices segment provides index that maintains various valuation and index benchmarks for investment advisors, wealth managers, and institutional investors. The company was formerly known as McGraw Hill Financial, Inc. and changed its name to S&P Global Inc. in April 2016. S&P Global Inc. was founded in 1888 and is headquartered in New York, New York.

FINANCIAL RATIOS  of  S&P Global (SPGI)

Valuation Ratios
P/E Ratio 19.1
Price to Sales 7.1
Price to Book 61.8
Price to Tangible Book
Price to Cash Flow 27.4
Price to Free Cash Flow 29.8
Growth Rates
Sales Growth Rate 6.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -17.3%
Cap. Spend. - 3 Yr. Gr. Rate -0.3%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 548.3%
Total Debt to Equity 548.3%
Interest Coverage 22
Management Effectiveness
Return On Assets 26.2%
Ret/ On Assets - 3 Yr. Avg. 12.6%
Return On Total Capital 52.5%
Ret/ On T. Cap. - 3 Yr. Avg. 30.4%
Return On Equity 499.1%
Return On Equity - 3 Yr. Avg. 275.1%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 68.8%
Gross Margin - 3 Yr. Avg. 68.4%
EBITDA Margin 62.2%
EBITDA Margin - 3 Yr. Avg. 35.1%
Operating Margin 59.5%
Oper. Margin - 3 Yr. Avg. 32.6%
Pre-Tax Margin 56.3%
Pre-Tax Margin - 3 Yr. Avg. 30.5%
Net Profit Margin 37.2%
Net Profit Margin - 3 Yr. Avg. 18.9%
Effective Tax Rate 30.1%
Eff/ Tax Rate - 3 Yr. Avg. 171.3%
Payout Ratio 18%

SPGI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SPGI stock intrinsic value calculation we used $5661 million for the last fiscal year's total revenue generated by S&P Global. The default revenue input number comes from 2016 income statement of S&P Global. 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 SPGI stock valuation model: a) initial revenue growth rate of 8.4% 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 4.3%, whose default value for SPGI is calculated based on our internal credit rating of S&P Global, 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 S&P Global.
    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 SPGI stock the variable cost ratio is equal to 63.9%.

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 SPGI 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 4.2% for S&P Global.

Corporate tax rate of 27% is the nominal tax rate for S&P Global. 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 SPGI 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 SPGI are equal to 31.5%.

Life of production assets of 26 years is the average useful life of capital assets used in S&P Global 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 SPGI is equal to -10%. 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 - $650 million for S&P Global - 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 258.077 million for S&P Global 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 S&P Global at the current share price and the inputted number of shares is $40.0 billion.

RELATED COMPANIES Price Int.Val. Rating
MCO Moody's 132.75 73.67  sell
EFX Equifax 144.80 117.93  hold
MORN Morningstar 81.85 100.42  buy
DNB Dun&Bradstreet 111.70 10.96  str.sell
CME CME Group Cl A 121.89 44.09  str.sell
TRI Thomson Reuter 45.75 40.22  hold
INFO IHS Markit 45.58 111.74  str.buy
TST TheStreet 0.830 1.49  str.buy

COMPANY NEWS

▶ Risks for Market Darlings, Moodys and S&P Global   [Jul-05-17 05:07PM  Motley Fool]
▶ The Credit Rating Agencies Side Businesses   [Jul-04-17 12:06PM  Motley Fool]
▶ Moodys and S&P Globals Growing Moats   [Jul-03-17 09:32AM  Motley Fool]
▶ How Credit Ratings Work   [Jul-02-17 08:43AM  Motley Fool]
▶ S&P Dow Jones Indices Releases Annual Survey of Assets   [Jun-29-17 12:01AM  PR Newswire]
▶ S&P Global Declares Quarterly Dividend   [Jun-27-17 02:20PM  PR Newswire]
▶ Raymond James CEO: Trump's corporate tax cut is too deep   [02:51PM  American City Business Journals]
▶ Kagan Releases Updated Retransmission Projections   [Jun-19-17 01:44PM  PR Newswire]
▶ [$$] S&P Downgrade Brings Illinois Closer to Junk   [Jun-01-17 08:08PM  The Wall Street Journal]
▶ Can defense stocks keep soaring?   [02:45PM  American City Business Journals]
▶ Matador Resources Set to Join S&P MidCap 400   [May-25-17 05:45PM  PR Newswire]
▶ Ramco-Gershenson Properties Set to Join S&P SmallCap 600   [May-05-17 06:00PM  PR Newswire]
▶ LeMaitre Vascular Set to Join S&P SmallCap 600   [May-01-17 06:08PM  PR Newswire]
▶ S&P Global Declares Quarterly Dividend   [08:57AM  PR Newswire]
Stock chart of SPGI Financial statements of SPGI Annual reports of SPGI
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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