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MSCI Inc. (MSCI)

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

Valuation Snapshot

Stable Growth$369.08 - $979.07$564.36
Multi-Stage$258.63 - $282.25$270.23
Blended Fair Value$417.29
Current Price$567.41
Upside-26.46%
DecisionDon't Buy

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 Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$369.08$564.36$979.07
Upside / Downside-34.95%-0.54%72.55%

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 Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)635.70641.72647.75
Year 2 PV (M)718.41732.09745.90
Year 3 PV (M)794.97817.79841.04
Year 4 PV (M)865.70898.99933.23
Year 5 PV (M)930.90975.861,022.54
PV of Terminal Value (M)16,160.3216,940.8717,751.29
Equity Value (M)20,105.9821,007.3221,941.76
Shares Outstanding (M)77.7477.7477.74
Fair Value$258.63$270.23$282.25
Upside / Downside-54.42%-52.38%-50.26%

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