Is Moody's Corporation (MCO) Undervalued?
Based on the current stock price of $520.04 and a P/E ratio of 41.84,Moody's Corporation has a PEG ratio of 2.36.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.36, MCO appears to be potentially overvalued relative to its growth rate of 17.71%.
Based on a PEG ratio of 2.27 (adjusted for dividends).
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How we analyzed MCO
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 41.84and dividing it by the annual growth rate of 17.71%.
PEG = 41.84 (P/E) ÷ 17.71 (Growth) = 2.36
Frequently Asked Questions about MCO
What is the current PEG Ratio for Moody's Corporation (MCO)?+
The current PEG Ratio for Moody's Corporation is 2.36. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is MCO stock undervalued right now?+
Based on the PEG ratio of 2.36, Moody's Corporation appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for MCO?+
The PEGY ratio for Moody's Corporation is 2.27. This metric accounts for dividend yield (0.72%), providing a more complete valuation picture.