Is Moody's Corp. overvalued or undervalued?

As of 17 October 2025, Moody's Corp. has moved from very expensive to expensive in its valuation grade. The company is currently considered overvalued based on key metrics, 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 and an EV to EBITDA of 28.86, highlighting a significant premium for Moody's.
Despite a strong ROE of 62.01% and a high dividend yield of 39.88%, the elevated valuation ratios suggest that the stock may not justify its current price levels. Additionally, Moody's has underperformed against the S&P 500 in the short term, with a year-to-date return of -0.49% compared to the index's 13.30%, indicating potential concerns about its valuation sustainability.