Morgan Stanley
Exchange: NYSESector: Financial ServicesIndustry: Capital Markets
Morgan Stanley Wealth Management, a global leader, provides access to a wide range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, cash management and lending products and services, annuities and insurance, retirement and trust services. About Morgan Stanley Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals.
Did you know?
A mega-cap stock valued at $300B.
Current Price
$188.82
+0.80%GoodMoat Value
$302.24
60.1% undervaluedProfile
Valuation (TTM)
Market Cap$300.09B
P/E18.47
EV$520.00B
P/B2.69
Shares Out1.59B
P/Sales4.25
Revenue$70.64B
EV/EBITDA21.13
Morgan Stanley (MS) Stock Analysis
GoodMoat Analysis
Morgan Stanley is a premier global investment bank and wealth manager with a strong competitive position, scoring a 6/14 on the Moat Framework. However, its valuation presents a complex picture, with a GoodMoat target implying significant upside but a negative free cash flow yield raising a key red flag for further investigation.
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Morgan Stanley operates a diversified financial services business, primarily in institutional securities (investment banking, trading) and wealth management. Its competitive advantages, or moat, stem from its global scale, entrenched client relationships, and powerful brand, which create significant switching costs and niche dominance in high-finance. Applying the GoodMoat Investment Framework, the company scores a 6 out of 14 on the Moat Identification checklist, passing the initial gate of a score of 5+. This is driven by its strong brand, mission-critical services for large clients, and scale privilege in capital markets. The business shows quality indicators like a solid ROE of 15.1% and an operating margin of 31.6%. Proceeding to the Decision Framework, the valuation assessment is mixed. The provided GoodMoat target price of $302.24 suggests a substantial margin of safety relative to the current $165.65 price. However, a significant High Confidence Red Flag is present: the Free Cash Flow Yield is negative at -7.9%, which conflicts with the typical value investor's requirement for strong, positive cash generation. This cash burn, alongside a high Debt/Equity ratio of 3.32, places the stock in the 'With Caution' category per the framework. It passes the Moat & Quality Gate but requires a very high-conviction view on the sustainability and drivers of its capital usage to justify the apparent valuation discount. Analysis based on data as of 2024-05-15.
Market Cap$300.09B
Current Price$188.82
P/E Ratio18.47
Forward P/E—
PEG Ratio0.90
EPS$10.21
Book Value$70.24
P/B Ratio2.69
MS Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 258.8B
Revenue
41.5B
FY19
48.8B
FY20
59.8B
FY21
53.7B
FY22
54.1B
FY23
61.8B
FY24
70.6B
FY25
Net Income
9.0B
FY19
11.0B
FY20
15.0B
FY21
11.0B
FY22
9.1B
FY23
13.4B
FY24
16.9B
FY25
MS 52-Week Range
$103.52
$191.62
50-Day MA: $169.23200-Day MA: $162.26
Did you know?
A mega-cap stock valued at $300B.
Morgan Stanley (MS) Financial Summary
Morgan Stanley (MS) is a Financial Services company in the Capital Markets industry, listed on NYSE. The stock currently trades at $188.82 with a market capitalization of $300.09B.
Key valuation metrics include a P/E ratio of 18.47, price-to-book ratio of 2.69, and EPS of $10.21. The company reports a profit margin of 23.9% and return on equity of 15.1%.
MS Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $300.09B |
| P/E Ratio | 18.47 |
| EPS | $10.21 |
| P/B Ratio | 2.69 |
| P/S Ratio | 4.25 |
| EV/EBITDA | 21.13 |
| Dividend Yield | 2.20% |
| Profit Margin | 23.9% |
| Return on Equity | 15.1% |
| Debt/Equity | 3.32 |
MS Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $41.54B | $9.04B |
| FY20 | $48.76B | $11.00B |
| FY21 | $59.76B | $15.03B |
| FY22 | $53.67B | $11.03B |
| FY23 | $54.14B | $9.09B |
| FY24 | $61.76B | $13.39B |
| FY25 | $70.64B | $16.86B |
Morgan Stanley (MS) Valuation
Based on GoodMoat's DCF model, Morgan Stanley has a fair value estimate of $302.24. At the current price of $188.82, the stock appears 37.5% undervalued relative to our intrinsic value estimate.
MS Quality Indicators
Morgan Stanley maintains a profit margin of 23.9% and an operating margin of 31.6%. Return on equity stands at 15.1%. Debt-to-equity ratio is 3.32.
About Morgan Stanley
Morgan Stanley Wealth Management, a global leader, provides access to a wide range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, cash management and lending products and services, annuities and insurance, retirement and trust services. About Morgan Stanley Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals.
MS Free Cash Flow
Morgan Stanley generated $-20.79B in trailing twelve-month free cash flow, representing an FCF yield of -6.93%. This low FCF yield may reflect heavy reinvestment or growth spending.
MS Shares Outstanding
Morgan Stanley has 1.59 billion shares outstanding at a share price of $188.82, giving it a market capitalization of $300.09B.
MS Recent Insider Trades
Recent insider transactions at Morgan Stanley include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| SIMKOWITZ DANIEL A (Co-President) | SELL | 14,690 | $2.78M |
| SAPERSTEIN ANDREW M (Co-President) | SELL | 6,584 | $1.23M |
| CRAWLEY MANDELL (Chief Client Officer) | SELL | 2,546 | $476742.57 |