Added to YB: 2025-06-09
Pitch date: 2025-06-05
MSCI [neutral]
MSCI Inc.
+4.25%
current return
Author Info
Compound & Fire shares at least one company deep dive every month. Sign up for the newsletter.
Company Info
MSCI Inc., together with its subsidiaries, provides research-based data, analytics, and indexes, supported by advanced technology worldwide.
Market Cap
$42.4B
Pitch Price
$558.60
Price Target
315.00 (-46%)
Dividend
1.41%
EV/EBITDA
25.13
P/E
33.31
EV/Sales
14.99
Sector
Capital Markets
Category
value
MSCI: A Quality Compounder at Risk—Why I’m Not Joining the Bullish Chorus
MSCI pass: High-margin data provider (82% gross) & index leader with strong ROIC (23.9%) showing cracks. Declining subscription sales, commoditization, negative shareholder equity & $4.5B debt (2.6x EBITDA) threaten moat. Current $564 price implies unrealistic 16.2% UFCF growth; fair value $336 (base case 9% growth).
Read full article (22 min)