SPGI
📊 S&P Global is described as a high-quality business, currently trading at approximately 28-29 times future earnings.
📈 The company is highlighted for its role in providing credit ratings, a crucial service for companies seeking to issue debt.
📉 Despite its strong market position, S&P Global is trading at a relatively low forward P/E ratio, suggesting potential undervaluation.
@bernardodegarcia:
“Today I wanted to bring you here, pretty quickly, SPGI. SPGI is a ‘beast,’ okay? It’s always trading expensively, but right now, SPGI, I don’t know, here it is, my mouse. SPGI is trading at 28 times future earnings, almost 29, for a very high-quality business. Not only that, but notice that it’s trading again at a yield of approximately 3. How much is this? 100 divided by 3.32, it’s trading at a yield of 30. I don’t know if it’s trading at a yield of… How much free cash flow is this company expected to generate for the next 12 months? Hmm, it’s not bad, it’s not bad for being a ‘beast’ like SPGI. Moody’s is also another very interesting company. It’s trading a bit more expensively, but well, with all these drops, it also became interesting. The yield is lower. What does S&P do? S&P is dedicated to providing ratings. S&P and Moody’s have a pretty interesting business because if you pay them, they analyze your company and tell you your credit value is triple A, or BB+, or blah, blah, blah, blah, okay? And from there, let’s say you can sell debt at a certain… The better your balance sheet, the better quality they will put you, the cheaper you will be able to sell your debt, okay? However, if you don’t work with them and you work with others, you’re not within this world of… of this circle of debt investors. So, to be able to place your debt, you will have to place it more expensively than normal. It’s a type of company that works with other companies, that it’s cheap for you to hire them. That is, for you, for the company, it benefits from hiring SPGI, Moody’s, and others because they end up having… they end up obtaining the possibility of placing cheaper debt, meaning they save a lot. So, of course, from there, these Moody’s, which have historical data and… and how our capitalist world works, are tremendous in general.”
In @bernardodegarcia’s video, viewers can see the exact part of the YouTube video where S&P Global is discussed:
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