Is Moody's Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Moody's Corp. has moved from very expensive to expensive, indicating a slight improvement in its valuation perspective. Based on the current metrics, the company appears overvalued. The P/E ratio stands at 72, significantly higher than its peer S&P Global, Inc., which has a P/E of 43.64. Additionally, Moody's has a Price to Book Value of 44.52 and an EV to EBITDA of 48.46, both of which suggest a premium valuation compared to industry norms.
In comparison to its peers, Moody's Corp. has a PEG ratio of 2.37, while S&P Global's PEG is lower at 2.55, reinforcing the notion of overvaluation. The recent stock performance shows that Moody's has underperformed against the S&P 500, with a year-to-date return of -0.49% compared to the S&P 500's 13.30%. This trend further supports the conclusion that Moody's Corp. is overvalued in the current market environment.