SPGI S&P Global

Investor summaryBullish

SPGI trades at multi-year low valuations despite high-quality duopoly ratings and embedded data assets, offering a compelling value buy.

Bull points

Trading near multi-year low valuation multiples despite high business quality.
Ratings business is a near-duopoly benefiting from long-term growth in global debt issuance.
Owns highly valuable, deeply embedded data, index, and analytics assets.

SPGI价值 / 回购

Post body

Any interest in $SPGI at these prices? The stock is trading near some of the lowest valuation multiples we’ve seen in years while the core business remains incredibly high quality. The ratings business operates in a near-duopoly and benefits from a long-term tailwind as global debt issuance continues to grow. On top of that, the company owns valuable data, index, and analytics assets that are deeply embedded in customer workflows. I think the market is overly focused on short term concerns and is giving investors a chance to buy a world class business at a reasonable valuation.

Discussion · top comments20 selected

u/LA-Aron 3· 1d ago

Yes. I think the spin-off is going to unlock a lot of value. I'm in.

u/Kratos5017 3· 1d ago

Same here. I have made it 5.4% of my portfolio at these current prices I think you do well over the next 5-10 years.

u/FrothyEspresso 1· 1d ago

What are they spinning off?

u/Kratos5017 3· 1d ago

They are spinning off their mobility division( CarFax) next month.

u/Brazilll 2· 1d ago

SPGI arguably has one of the widest moats on the planet and is currently trading around fair value, which IMO makes it a pretty good deal.

u/FieryXJoe 2· 1d ago

Every time I run the numbers there is still a lot of quality priced in and frankly I just don't understand the industry enough to know if its worth the premium.

u/jackandjillonthehill 2· 1d ago

Surely you understand the index side of the business…

Bond ratings is very interesting.

Here is great lecture from Joel Greenblatt’s value investing course on bond ratings and why they bought Moody’s: https://youtu.be/nNhiB3HLWnk?is=w5fy4R6JoMoZ37tk

u/raytoei 1· 1d ago

I agree with you on spgi. Some of the world’s most savvy investors bough spgi and mco too.

u/Kratos5017 3· 1d ago

I used to own both but sold MCO and put it into SPGI. Munger used to say buy a wonderful company at a fair price. I think SPGI is at a fair price rn

u/raytoei 1· 1d ago

I actually added mco recently too.

u/Kratos5017 3· 1d ago

Can’t go with that imo. I think both present a great opportunity. 🙌🏽

u/That-Requirement-233 1· 1d ago

A company can be doing great but its stock not worth holding. Low expectation of explosive growth = flat to slowly negative drifting stock price

u/Weak-Pomegranate-435 1· 1d ago

Not yet

u/Automatic-Control912 1· 19h ago

care to explain?

u/Weak-Pomegranate-435 1· 13h ago

Still overpriced. Whats there to explain?

u/Automatic-Control912 1· 13h ago

what do you think is right price to enter?

u/SirApplebyHumphrey 1· 1d ago

Yes, I recently opened a position. I am also interested in the Mobility spinoff, mostly to see if the Greenblatt playbook is applicable here

u/Shoddy-Series7016 1· 1d ago

It depends on rate cuts for a robust global refinancing wave

If that's the case, it will lead to strong growth in Ratings revenue, particularly in corporate and structured finance issuance.

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