Is Moody's Corp. overvalued or undervalued?

As of 17 October 2025, Moody's Corp. has moved from a very expensive valuation to an expensive one. The company is currently overvalued based on its high valuation ratios, including 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 ratio of 43.64, indicating that Moody's is trading at a significant premium relative to its peer.
The stock has underperformed against the S&P 500 over various periods, with a year-to-date return of -0.49% compared to the S&P 500's 13.30%, and a one-year return of -3.10% versus the S&P 500's 14.08%. This underperformance further supports the conclusion that Moody's Corp. is overvalued in the current market environment.