Is the Market Undervaluing $MSCI?
When I look at $MSCI Inc(MSCI)$ I see three things:
1. A great company with strong financial metrics
2. An attractive valuation
3. A share price that hasn’t done anything for 5 years
To me this could means one of two things:
1. The market is right and in the future profitability and business quality will deteriorate
2. The market is wrong and is underestimating future profitability and business quality
If it’s the latter, a catalyst will be needed to convince the market that MSCI deserves a higher share price.
I agree it’s subjective.
But two objective points are (1) its FCF yield is now at a long term high.
And (2) other companies of this quality are trading at lower FCF yields.
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