S&P Global Inc. (SPGI) stock analysis

P/E below its 5-year median

S&P Global's P/E of 28.2 is below its own 5-year median of 38.7.

P/E above the industry

S&P Global's P/E of 28.2 is above the Business Services median of 26.9.

EV/EBITDA below its 5-year median

S&P Global's EV/EBITDA of 19.0 is below its 5-year median of 27.7.

P/B above the industry

S&P Global's price-to-book of 6.96 is above the Business Services median of 2.98.

Trading above fair value

The share price of $473.38 is above our fair value estimate of $465.02.

Margin of safety under 20%

The price is 1.8% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 11.1% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 12.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 18.2% over the last twelve months, against a 5-year average of 13.8% a year.

Growing faster than the industry

Revenue grew 18.2% over the last twelve months; the Business Services median is 9.1%.

Guidance raised

S&P Global raised its Full-Year 2026 Organic, Constant Currency Revenue growth outlook on Oct 27, 2026.

Gross margin improving

Gross margin was 70.9% over the last twelve months, against 70.0% a year earlier.

Return on equity over 15%

Return on equity was 18.9% over the last twelve months and averaged 57.5% over five years.

Return on capital over 10%

Return on invested capital was 16.2%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

S&P Global's return on equity of 18.9% is above the Business Services median of 1.4%.

Earnings grew over 5 years

Net income grew 13.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 29.0% over the last twelve months, against a 5-year average of 28.6%.

Net margin above the industry

S&P Global's net margin of 29.0% is above the Business Services median of -1.7%.

High debt

Debt is 66.3% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 807% five years ago to 66.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 45.9% of total debt.

Interest well covered

Operating income covers interest expense 24.0 times.

Short-term assets don't cover short-term debts

Current assets are 0.74 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.92; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

S&P Global paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; S&P Global yields 0.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 23.0% of net income.

Covered by free cash flow

Dividends take 19.6% of free cash flow.