Since September 2025, MSCI has been in a holding pattern, floating around $565.
Is there a buying opportunity in MSCI, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.
Why Is MSCI Not Exciting?
We're sitting this one out for now. Here is one reason there are better opportunities than MSCI and a stock we'd rather own.
Previous Growth Initiatives Have Lost Money
Return on equity, or ROE, tells us how much profit a company generates for each dollar of shareholder equity, a key funding source for banks. Over a long period, banks with high ROE tend to compound shareholder wealth faster through retained earnings, buybacks, and dividends.
Over the last five years, MSCI has averaged an ROE of negative 139%, a bad result not only in absolute terms but also relative to the majority of firms putting up 25%+. It also shows that MSCI has little to no competitive moat.
Final Judgment
MSCI’s business quality ultimately falls short of our standards. That said, the stock currently trades at 29.3× forward P/E (or $565 per share). This multiple tells us a lot of good news is priced in - we think there are better opportunities elsewhere. We’d recommend looking at the Amazon and PayPal of Latin America.
Stocks We Would Buy Instead of MSCI
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