SPGI

SPGI

S&P Global

Platform / Network

★ Quality 56/100
Discounted

Price today

$430.33

what the market pays

Worth

$506.21

calculated cycle value

Worth $506.21price today $430.33

Price is 15% below its value

charlieapp.co

🏆

A monopoly position

This company has a competitive advantage so strong that its rivals find it practically impossible to replicate.

Price vs Intrinsic Value

VI$305$383$461$539$617'21'22'23'24'25'26SPGIVI $506 · MdS +18%
UndervaluedDiscountedFair priceIV = current model value

The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.

Where does the value come from?

🌐

Digital platform

$541.38

per share

How it's calculated

💰

Free cash flow per share

normalized free cash flow

$16.92
×
📐

Multiplier

years of discounted cash flows

32.0x
=
🏢

Business value

without cash

$541.38

S&P Global — high assistant path (2026-06-07). Review note.

🏦

Net cash in the bank

cash minus financial debt, per share

$35.17

Total calculated value

business + cash

$506.21

How many times the cash flow

Platform / Network · vs 27 peers

You pay today
27.5x
Sector median
28.5x
Charlie: worth
32x

You pay 27.5x times this business's cash flow; its sector median is 28.5x.

16% below what Charlie thinks it's worth (32x) — that gap is your safety margin.

Why Discounted?

Its free cash flow is $16.92/share × 32.0x multiplier minus $35.17 in negative net cash = $506.21 in intrinsic value. Today's price of $430.33 is 18% below value — a moderate discount, a good spot to enter gradually.

🟡

The price is 15% off the calculated value. Close, but without the ideal discount.

It's fine to buy in pieces. Monthly DCA works well here.

💡

For a bigger safety margin, wait for $404.97 or less.

At what price would buying make sense?

Entry zones

🟢 Undervalued

$404.97

-20% off Value

🟡 Discounted

$480.90

-5% off Value

🟡 Today

$430.33

+18% Valor

🟡

Discounted

The price is close to value. There's no big discount, but it's reasonable to invest in pieces.

The market is a device for transferring money from the impatient to the patient.

— Warren Buffett

Model updated · July 2026

The business

It grades the world's debt; nobody issues bonds without its stamp.

S&P Global rates debt (corporate and government bonds), sells financial data by subscription, and licenses indexes like the S&P 500. It charges for every rating, for every subscription to its data terminals, and takes a slice of every fund that tracks its indexes. It brought in $15.3B in 2025.

In ratings it's a duopoly with Moody's, shielded by regulation: to issue large debt you need its signature. The S&P 500 index is the standard everyone copies, so it collects licensing fees without lifting a finger. Decades of historical data a rival can't recreate overnight.

Revenue history

$8.3B
2021
$11.2B
2022
$12.5B
2023
$14.2B
2024
$15.3B
2025
CAGR 5 años: +16%

From $8.3B to $15.3B in 4 years — nearly 1.8x its size. Selling more and more is the base of everything else.

Where each $100 of sales goes

Revenue $15.3B · FY2025

Cost of sales$4.6B · 30%
Operations$4.3B · 28%
Taxes and other$2.0B · 13%
Net profit$4.5B · 29%

Of every $100 in sales, $71 goes to costs and operations; $29 is left as net profit (29% margin).

Catalysts and risks

The boom in indexed money (funds that replicate the S&P 500) fattens licensing fees year after year.

A recovery in bond issuance when rates drop boosts ratings revenue.

Expansion into private credit and AI data (Kensho, Capital IQ) opens new subscription markets.

⚠️

The ratings business rises and falls with debt issuance; high rates freeze it.

⚠️

The duopoly with Moody's draws recurring regulatory scrutiny over conflicts of interest.

⚠️

Debt of $13.1B against $1.7B in cash: comfortable today, uncomfortable if credit dries up.

Charlie's note

A business that collects a toll on the planet's debt and indexes, with a 70% gross margin and growing at 17%, deserves to be paid up for. At 32x free cash flow they're not giving anything away, but a toll with no real competition rarely gets given away.

Analysis · July 2026

So when would be a good price for S&P Global?

Today it trades below what we calculate. If you want us to tell you when that changes —or when the value itself moves because the company reported— we will email you.

🔔 Email me

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Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.