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S&P Global Inc SPGI

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

S&P Global, IHS Markit Synergy Targets Seem Reasonable to Us and Will Come From Many Initiatives

Rajiv Bhatia, CFA Equity Analyst

Analyst Note

| Rajiv Bhatia, CFA |

After doing a deep dive into wide-moat rated S&P Global and IHS Markit’s businesses as well as updating our model, we are increasing our fair value estimate to $366 from $345. About $5 of the increase is attributable to higher standalone earnings, primarily to reflect the equity bull market benefiting asset levels in index passive products tied to S&P Dow Jones indexes. The remaining $16 increase is to reflect the present value of anticipated synergies between the merger of S&P Global and IHS Markit.

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Company Profile

Business Description

S&P Global provides data and benchmarks to capital and commodity market participants. S&P Ratings, which constitutes over 40% of the firm's revenue and over 50% of the firm's operating income, is the largest credit rating agency in the world. The firm's other segments include Market Intelligence, Indices, and Platts. Market Intelligence provides desktop tools and other data solutions to investment banks, corporations, and other entities. Indices provides benchmarks for financial markets and is monetized through subscriptions, asset-based fees, and transaction-based royalties. Platts provides benchmarks to commodity markets, principally petroleum.

Contact
55 Water Street
New York, NY, 10041
T +1 212 438-1000
Sector Financial Services
Industry Financial Data & Stock Exchanges
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 23,000

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