Key insights
- An analyst suggests S&P Global (SPGI) is undervalued, trading at multi-year low multiples despite its high-quality business. The ratings, data, index, and analytics segments are seen as strong, benefiting from growing global debt issuance and embedded customer workflows. The market's focus on short-term issues is creating a buying opportunity for a world-class business at a reasonable valuation.
Any interest in $SPGI at these prices? The stock is trading near some of the lowest valuation multiples we’ve seen in years while the core business remains incredibly high quality. The ratings business operates in a near-duopoly and benefits from a long-term tailwind as global debt issuance continues to grow. On top of that, the company owns valuable data, index, and analytics assets that are deeply embedded in customer workflows. I think the market is overly focused on short term concerns and is giving investors a chance to buy a world class business at a reasonable valuation.