Using the PEG framework with analyst consensus forward EPS growth of 16.2% plus 1.4% dividend yield, MSCI Inc. has a fair value of $314.62 based on NTM EPS (FY2026) of $19.45. The current PEG ratio is 1.70.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 14.8% |
| Dividend Yield | +1.4% |
| Adjusted Growth (clamped 8–25%) | 16.2% |
| Fair P/E | 16.2x |
| NTM EPS (FY2026) | $19.45 |
| Fair Value | $314.62 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $15.56 | — | — |
| FY2026E | $19.45 | +25.0% | 11 |
| FY2027E | $21.99 | +13.1% | 11 |
| FY2028E | $24.89 | +13.2% | 9 |
| FY2029E | $27.67 | +11.2% | 4 |
| FY2030E | $30.98 | +12.0% | 4 |
5Y Forward EPS CAGR: 14.8%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $726.0M | $8.70 | — |
| FY2022 | $870.6M | $10.72 | +23.2% |
| FY2023 | $1.1B | $14.39 | +34.2% |
| FY2024 | $1.1B | $14.05 | -2.4% |
| FY2025 | $1.2B | $15.56 | +10.7% |
4Y Historical EPS CAGR: 15.6%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.