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Moody’s DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.1383%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 3%

Historical Data

Revenue growth in the last 10 years (CAGR): 7.36%

Earnings growth in the last 10 years (CAGR): 8.14%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 8.77%

Future Assumptions

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.1383%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 3%

End of Year FCF growth: 5%

Growth until end of 2026: 8%

Growth until end of 2034: 7%

Perpetual growth: 3.2%

Net Debt: 5.067B

Outstanding Stock Options Present Value Assumption: $19.177B

Stock Appreciation Rights Valuation Assumption: $0.143B

Restricted Stock Units + Performance Stock Units Present Value Assumption: $0.775B

Stock Valuation based on these assumptions: $428

Last update 06/02/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Moody’s (MCO) and I don’t plan to add a position in the coming days.