MS
Morgan Stanley
Investment Bank
★ Quality 44/100Price today
$217.72
This company value is already calculated
We know what it is worth from its audited numbers, and whether it trades above or below that today. Create your free account to see it.
See what it is worthcharlieapp.co
What this business is made of
The business
Takes a cut of every fortune it manages and every big deal it closes.
Morgan Stanley has two engines: investment banking (advising on mergers, IPOs, debt issuance) and wealth management (managing $7.3 trillion in assets for wealthy clients). It charges recurring fees on those assets —about 70% of its revenue already comes from stable fees— plus fees when it closes deals. It booked $70.6B with net income of $16.9B.
The edge is in wealth management: once a wealthy client trusts you with their money, moving it is a hassle and rare. That generates predictable fee income and a return on tangible capital (ROTCE) of 21.6%. Even so, it competes head-on with rivals just as strong; it's no impregnable moat.
Revenue history
From $59.8B to $70.6B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $70.6B · FY2025
Of every $100 in sales, $76 goes to costs and operations; $24 is left as net profit (24% margin).
Catalysts and risks
Wealth management with $7.3B in assets generating growing recurring fees.
Return on tangible capital of 21.6%, among the best in the sector.
A recovery in mergers and IPOs would reignite investment banking.
Investment banking is cyclical: no deals, and the fees dry up.
Net income very sensitive to the swings of financial markets.
No real moat, so fee pressure from rivals erodes margins.
Charlie's note
“A business earning 21% on its tangible capital with no wall to protect it, growing around 15%. At 1.67 times book value you pay full quality, with no discount for the cyclical scares. Good business, bad time to rush.”
Analysis · July 2026
Want to follow Morgan Stanley?
We do not calculate a value here: Morgan Stanley does not generate cash flows you can project, and putting a number on it would be making it up. What you can do is follow it and tell us the price you care about — we will email you when it gets there.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.