Using the industry peer median P/E multiple (trailing + forward), MSCI Inc. (MSCI) has a fair value of $256.80 based on 7 comparable companies in the Financial - Data & Stock Exchanges industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| MSCI Inc.MSCI | 41,485 | 34.5x | 27.6x |
| JPMorgan Chase & Co.JPM | 788,612 | 14.6x | 15.7x |
| The Allstate CorporationALL | 53,737 | 5.4x | 12.3x |
| Nasdaq, Inc.NDAQ | 48,055 | 27.2x | 21.5x |
| MetLife, Inc.MET | 45,997 | 14.5x | 8.0x |
| Ameriprise Financial, Inc.AMP | 41,845 | 12.4x | 11.6x |
| American International Group, Inc.AIG | 40,247 | 13.7x | 14.8x |
| Cboe Global Markets, Inc.CBOE | 29,436 | 27.0x | 23.8x |
| Industry Median | 14.5x | 14.8x | |
| (*) Profit after tax | 1,202 | 1,503 | |
| Equity Value | 17,486 | 22,210 | |
| (/) Outstanding shares | 77 | 77 | |
| Fair Price | $226 | $287 | |
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.