S&P Global Inc.
SPGI
$0.00
+1.41%
S&P Global Inc. is a leading provider of data, benchmarks, and analytics to capital and commodity market participants. It is defined by its dominant position as the world's largest credit rating agency and its extensive data intelligence platforms, forming a core narrative of essential financial market infrastructure.…
SPGI
S&P Global Inc.
$0.00
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Investment Opinion: Should I buy SPGI Today?
Based on a synthesis of the data, SPGI presents a compelling long-term investment case for investors seeking exposure to essential financial infrastructure, but the timing of entry is crucial. The stock's current valuation is more reasonable on a forward-looking basis (P/E of 19.3), and its strong fundamentals provide a margin of safety. However, the negative technical momentum and macroeconomic headwinds suggest potential for further near-term volatility. The objective assessment of the data points to a 'Hold' rating for existing investors, with a 'Buy' rating being more appropriate for new, patient investors who can tolerate short-term fluctuations and are investing with a multi-year horizon.
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SPGI 12-Month Price Forecast
The analysis yields a neutral stance due to conflicting signals: exceptionally strong business quality and cash flows are countered by a premium absolute valuation and clear negative price momentum. Confidence is medium as the path depends heavily on the resolution of macroeconomic uncertainties.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on S&P Global Inc.'s 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
6 analysts
Implied Upside
—
vs. current price
Analyst Count
6
covering this stock
Price Range
$0 - $0
Analyst target range
No sufficient analyst coverage available. The provided data includes recent analyst rating actions but does not contain a consensus target price or a detailed ratings distribution summary. The institutional ratings list shows recent actions from firms like BMO Capital, UBS, and Goldman Sachs, all maintaining positive ratings such as 'Outperform' and 'Buy', indicating continued Wall Street confidence.
Bulls vs Bears: SPGI Investment Factors
SPGI is a high-quality financial infrastructure company with strong fundamentals, offset by a premium valuation and recent technical weakness. The stock appears to be in a corrective phase after a significant decline from its highs. The core business remains robust, but investor sentiment is currently negative.
Bullish
- Dominant Market Position: World's largest credit rating agency and leading data provider.
- Strong Financial Performance: Robust revenue growth, high margins, and strong free cash flow.
- Healthy Balance Sheet: Moderate debt-to-equity of 0.45 and solid ROE of 14.3%.
- Analyst Confidence: Recent 'Outperform' and 'Buy' ratings from major firms.
Bearish
- Premium Valuation Metrics: Trailing P/E of 35.6 and P/S of 10.4 are elevated.
- Weak Technical Trend: Down 10.8% over 6 months, underperforming the S&P 500.
- Macroeconomic Sensitivity: Business is cyclical and sensitive to capital market activity.
- Regulatory & Competitive Risks: Rating agencies face regulatory scrutiny and competition.
SPGI Technical Analysis
The stock's overall trend over the last six months has been negative, with a price decline of 10.76% from October 2025 to the current price of $425.34. It experienced a sharp sell-off in February 2026, dropping from over $520 to below $400, and has since been trading in a volatile, sideways pattern between approximately $400 and $450. Short-term performance shows continued pressure, with the stock down 18.61% over the last three months and 3.74% over the last month, significantly underperforming the broader market as indicated by negative relative strength figures. The current price of $425.34 sits near the lower end of its 52-week range of $381.61 to $579.05, representing a drawdown of approximately 26.5% from its high and indicating the stock is in a corrective phase.
Beta
1.20
1.20x market volatility
Max Drawdown
-30.7%
Largest decline past year
52-Week Range
$382-$579
Price range past year
Annual Return
-16.1%
Cumulative gain past year
| Period | SPGI Return | S&P 500 |
|---|---|---|
| 1m | -2.9% | -4.3% |
| 3m | -15.9% | -4.0% |
| 6m | -10.1% | -2.0% |
| 1y | -16.1% | +22.2% |
| ytd | -15.9% | -3.8% |
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SPGI Fundamental Analysis
Revenue and profitability remain robust. Q4 2025 revenue grew 9.0% year-over-year to $3.92 billion, with a strong net margin of 29.0%. Quarterly net income of $1.13 billion was up significantly from $880 million in Q4 2024, demonstrating healthy earnings growth. The company maintains a moderate debt-to-equity ratio of 0.45, indicating a balanced capital structure. Free cash flow generation is strong, with TTM free cash flow of $5.46 billion, providing ample liquidity for dividends, share repurchases, and strategic investments. Operational efficiency is solid, with a Return on Equity (ROE) of 14.3% and a Return on Assets (ROA) of 6.66%, reflecting effective use of shareholder capital and company assets.
Quarterly Revenue
$3.9B
2025-12
Revenue YoY Growth
+0.09%
YoY Comparison
Gross Margin
+0.70%
Latest Quarter
Free Cash Flow
$5.5B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is SPGI Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio is elevated at 35.6, while the forward P/E is a more moderate 19.3, suggesting expectations for future earnings growth. The Price-to-Sales (P/S) ratio of 10.4 and EV/EBITDA of 22.3 also indicate a premium valuation. Peer comparison data is not available in the provided inputs, so a direct industry average comparison cannot be made. The valuation appears to reflect the company's high-quality, market-leading business model and stable cash flows.
PE
35.6x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 23x~63x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
22.3x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risks for SPGI are macroeconomic and market-related. As a provider of data and ratings to capital markets, its revenue is highly correlated with global financial activity. News of potential stagflation and elevated market valuations (e.g., Shiller P/E of 40.36 for the S&P 500) suggests a fragile economic environment that could suppress deal flow and capital market issuance, directly impacting SPGI's key divisions. Regulatory risk is a persistent concern for the ratings business. Furthermore, the planned spin-off of its Mobility segment (Carfax) in 2026 introduces operational and strategic execution risk, potentially creating a distraction for management and uncertainty for investors regarding the future capital structure and growth profile of the core company. While the company's financial health is strong, its beta of 1.22 indicates it is likely to experience above-average volatility during market downturns.
FAQ
Key risks include macroeconomic sensitivity, as a slowdown in capital markets directly hits revenue; regulatory scrutiny of its core ratings business; execution risk around the planned 2026 Mobility segment spin-off; and competitive pressures in data and analytics. The stock's beta of 1.22 also means it is likely to be more volatile than the broader market during downturns.
The 12-month outlook is for a base case target range of $450-$500, representing modest upside from the current ~$425, assuming earnings growth and multiple stabilization. A bull case to $520+ is possible with a market rebound, while a bear case could retest the 52-week low of $381. The forecast is highly dependent on the path of interest rates and financial market activity.
SPGI's valuation sends mixed signals. Its trailing P/E of 35.6 and P/S of 10.4 are historically high, suggesting a premium. However, the forward P/E of 19.3, based on expected EPS growth, appears more reasonable for a market leader. The stock is not deeply undervalued but has corrected from its highs, moving from overvalued to fairly valued based on forward earnings expectations.
SPGI is a good stock for long-term investors seeking quality and stability. Its strong fundamentals, including a 29% net margin and $5.5B in annual free cash flow, support the thesis. However, the current investment merits depend on horizon; the forward P/E of 19.3 is reasonable, but near-term macroeconomic risks and technical weakness suggest potential for further volatility before a sustained recovery.
SPGI is far more suitable for a long-term investment horizon. Its business model benefits from compounding data assets and deep customer relationships over time. Short-term trading is challenged by the stock's sensitivity to economic cycles and current negative momentum. Patient investors can look through near-term volatility to capture the company's durable cash flow generation and market leadership.