Using the industry peer median P/E multiple (trailing + forward), Morgan Stanley (MS) has a fair value of $177.57 based on 4 comparable companies in the Financial - Capital Markets industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Morgan StanleyMS | 261,666 | 16.1x | 16.6x |
| The Goldman Sachs Group, Inc.GS | 247,147 | 16.1x | 16.9x |
| The Charles Schwab CorporationSCHW | 167,903 | 20.3x | 16.1x |
| Robinhood Markets, Inc.HOOD | 63,179 | 34.2x | 30.1x |
| Raymond James Financial, Inc.RJF | 28,655 | 14.1x | 14.0x |
| Industry Median | 18.2x | 16.5x | |
| (*) Profit after tax | 16,861 | 15,749 | |
| Equity Value | 306,308 | 259,444 | |
| (/) Outstanding shares | 1,593 | 1,593 | |
| Fair Price | $192 | $163 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.