Is Moody's Corp. overvalued or undervalued?

As of 22 May 2025, Moody's Corp. has moved from a fair valuation to an expensive one. The company is currently considered overvalued. Key ratios include a P/E ratio of 72, a Price to Book Value of 44.52, and an EV to EBITDA of 48.46. In comparison, S&P Global, Inc. has a P/E of 40.10 and an EV to EBITDA of 26.71, while Equifax, Inc. is even more expensive with a P/E of 75.23.
Despite a robust ROE of 62.01% and a high dividend yield of 39.88%, the elevated valuation metrics suggest that the stock may not justify its current price level. Recent performance shows that Moody's has outperformed the S&P 500 over the past year, but the significant premium in its valuation raises concerns about future growth sustainability.