Deep Value Investing
Value Investor, Long-Term Compounding
S&P Global is undervalued by a lot, trading near 23x earnings and 20x forward versus a historical 30+, especially for a business of its quality. Mastercard may be fairly valued or slightly below, though it is the best business in the world with the least risk. This answers @Greg_GL_87, who argued both still trade near 30x earnings. x.com
S&P Global is a great opportunity and an easy sleep-at-night pick, the best quality among several cheapened compounders. Per @timoassi, it trades at 24.7x earnings versus a 10-year average of 37x, back to 2022 levels, while revenue grew from $11.2B to $15.7B. @DividendDynasty notes its 4.9% free cash flow yield is the highest in over five years. x.com x.com x.com x.com
S&P Global's valuation compression while fundamentals still look good is a gift from the market, because it owns two of the strongest businesses in the world. x.com
S&P Global looks like a strong, fairly low-risk stock likely to beat the market from here, as it trades at 20x forward earnings, among its lowest levels in a decade, despite one of the world's strongest moats. With Moody's it forms one of the best duopolies anywhere, yet it has been lumped into the SaaS selloff. x.com
S&P Global may be boring, but it has one of the more interesting setups: after falling about 20% year to date, it trades at about 22x forward earnings versus a five-year average of about 29x. Nine tracked fund managers bought or added to it. x.com
S&P Global and Moody's look pretty cheap for a duopoly growing 10-11% a year, trading at 20-25 times earnings, with S&P Global the cheaper of the two. x.com
S&P Global's ratings and indices could form an exceptionally profitable, wide-moat standalone business. Without its other units, their implied operating margin would be around 68%, among the market's top five; that makes further spinoffs sensible, though the separation is hypothetical. x.com x.com
S&P Global's stock price has recently disconnected from its business fundamentals, the kind of dislocation that makes a stock worth buying. x.com
S&P Global's two core businesses are growing nicely, and buying back roughly 5% of its shares at this valuation should create value over time. Excluding Mobility, Q2 revenue rose 11% and EPS 26%. Guidance came in a few pennies below consensus, but the report is hard to dislike. x.com
S&P Global collects a toll on new bonds and money flowing into index funds. It is a five-year buy at today's valuation despite a roughly 16% year-to-date share decline amid AI fears: last quarter ratings revenue grew 17%, index revenue 20%, and EPS 23%. Free cash flow per share has compounded 14.5% annually since late 2016. x.com
S&P Global shows a clear disconnect between fundamentals and price, if price follows free cash flow per share over time. Q1 2026 revenue rose 10% and EPS 32%, and per CEO Martina Cheung nearly 150 customers in its Market Intelligence and Energy divisions now use its data through AI applications like Claude and Copilot. x.com
S&P Global is undervalued while the market it profits from is overvalued, making it a better buy than the S&P 500. The wide gap between the two is itself the opportunity. x.com x.com
