S&P GLOBAL INC. is https://www.spglobal.com/en a provider of Financial intelligence solutions.
S&P Global Inc. operations consist of Five Businesses: S&P Global Market Intelligence, S&P Global Ratings, S&P Global commodity Insights, S&P Global Mobility and S&P Dow Jones Indices. S&P Global Inc. was founded in 1860 and is headquartered in New York.
Shareholder Return: During the three years ended December 31,2023 S&P Global Inc. has returned approximately $18.2 Billion to the shareholders through a combination of share purchases and quarterly dividends.
S&P Global Inc. Common stock trades on New York Stock exchanges under the symbol SPGI.
Crisil Limited https://www.crisil.com/ is an Indian Analytical company providing ratings, research and advisory services and is a subsidiary of S&P Global Inc.
Revenue analysis of S&P Global Inc. for the last three years
|
Revenue mix in US$ Millions |
2023 |
2022 |
2021 |
|
Market Intelligence |
4376 |
3811 |
2185 |
|
Ratings |
3332 |
3050 |
4097 |
|
Commodity Insights |
1946 |
1685 |
1012 |
|
Mobility |
1484 |
1142 |
|
|
Indices |
1403 |
1339 |
1149 |
|
Engineering Solutions |
133 |
323 |
|
|
Inter segment elimination |
(177) |
(169) |
(146) |
|
Total Revenue |
12,497 |
11,181 |
8,297 |
FCFE Details of S&P Global Inc. shown below, US$ in millions, except per share data
|
Year |
Value |
FCFE or Terminal Value |
Present Value at 15.51% |
|
0 |
FCFE0 |
3671 |
3671 |
|
1 |
FCFE1 |
3857 |
3178 |
|
2 |
FCFE2 |
4129 |
2891 |
|
3 |
FCFE3 |
4500 |
2679 |
|
4 |
FCFE4 |
4993 |
2528 |
|
5 |
FCFE5 |
5639 |
2429 |
|
5 |
Terminal Value (TV5) |
253,739 |
17,376 |
|
Intrinsic value of S&P Global Inc. |
$140,769 |
|
Market cap of S&P Global Inc. |
$160.354 Billion |
|
Intrinsic value of S&P Global Inc. common stock (per share) |
$452.34 |
|
Current share price on 12/07/2024 |
$516.77 |
Required rate of Return
Assumptions
|
Rate of return on LT Treasury Composite(Rf) |
4.36% |
|
Expected rate of return on market portfolio(E(RM) |
13.81% |
|
Systematic risk of S&P Global Inc. Common stock (β) |
1.18 |
|
Required rate of return on S&P Global Inc.. Common Stock (r) Calculation : Rf + β(E(RM)- (Rf) = 4.36% +1.18[13.81% - 4.36%] |
15.5% |
FCFE Growth rate Forecast
S&P Global Inc. H-Model
|
Year |
Value |
Growth Rate |
|
1 |
g1 (PRAT Model) |
5.08% |
|
2 |
g2 (Linear Interpolation) |
7.04% |
|
3 |
g3 (Linear Interpolation) |
9% |
|
4 |
g4 (Linear Interpolation) |
10.96% |
|
5 |
g5 (Single stage model) |
12.93% |
2023 Ratio Calculations
|
Retention rate |
60.35% |
|
Dividend yield |
0.53% |
|
Operating Margin |
32% |
|
Profit margin |
23.15% |
|
Current Ratio |
0.84 |
|
Asset turnover |
0.21 |
|
Financial Leverage |
1.76 |
|
Return on Asset |
4.77% |
|
Return on Equity |
8.43% |
|
EPS |
8.23 |
|
PE Ratio |
62.79 |
|
Price to Sales ratio |
12.83 |
Sources : Form 10K of S&P Global Inc. for the fiscal year 2023 https://investor.spglobal.com/sec-filings-reports/annual-reports/default.aspx , https://www.stock-analysis-on.net/ , https://finance.yahoo.com , https://companiesmarketcap.com/
Disclosures
This report is based on information obtained in good faith from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments.
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