Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

MSCI Inc. (MSCI)

Company Dividend Discount ModelIndustry: Financial - Data & Stock ExchangesSector: Financial Services

Valuation Snapshot

Stable Growth$2,655.89 - $3,129.09$2,932.42
Multi-Stage$1,801.64 - $1,976.89$1,887.63
Blended Fair Value$2,410.02
Current Price$567.41
Upside324.74%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS17.96%37.95%6.555.674.803.893.172.872.201.541.241.13
YoY Growth--15.45%18.26%23.30%22.73%10.55%30.41%42.79%24.46%9.63%330.26%
Dividend Yield--1.16%1.02%0.86%0.77%0.76%0.99%1.09%1.03%1.27%1.52%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,223.15
(-) Cash Dividends Paid (M)546.52
(=) Cash Retained (M)676.64
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)244.63152.8991.74
Cash Retained (M)676.64676.64676.64
(-) Cash Required (M)-244.63-152.89-91.74
(=) Excess Retained (M)432.01523.74584.90
(/) Shares Outstanding (M)77.7477.7477.74
(=) Excess Retained per Share5.566.747.52
LTM Dividend per Share7.037.037.03
(+) Excess Retained per Share5.566.747.52
(=) Adjusted Dividend12.5913.7714.55
WACC / Discount Rate2.41%2.41%2.41%
Growth Rate5.50%6.50%7.50%
Fair Value$2,655.89$2,932.42$3,129.09
Upside / Downside368.07%416.81%451.47%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,223.151,302.661,387.331,477.501,573.541,675.821,726.10
Payout Ratio44.68%53.74%62.81%71.87%80.94%90.00%92.50%
Projected Dividends (M)546.52700.11871.361,061.921,273.571,508.241,596.64

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate2.41%2.41%2.41%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)677.22683.64690.05
Year 2 PV (M)815.31830.84846.51
Year 3 PV (M)961.12988.711,016.82
Year 4 PV (M)1,114.991,157.871,201.97
Year 5 PV (M)1,277.261,338.961,403.01
PV of Terminal Value (M)135,212.62141,743.44148,524.21
Equity Value (M)140,058.51146,743.44153,682.58
Shares Outstanding (M)77.7477.7477.74
Fair Value$1,801.64$1,887.63$1,976.89
Upside / Downside217.52%232.67%248.41%

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