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1. Company Snapshot

1.a. Company Description

MSCI Inc., together with its subsidiaries, provides investment decision support tools for the clients to manage their investment processes worldwide.It operates through four segments: Index, Analytics, ESG and Climate, and All Other – Private Assets.The Index segment provides indexes for use in various areas of the investment process, including indexed product creation, such as ETFs, mutual funds, annuities, futures, options, structured products, over-the-counter derivatives; performance benchmarking; portfolio construction and rebalancing; and asset allocation, as well as licenses GICS and GICS Direct.


The Analytics segment offers risk management, performance attribution and portfolio management content, application, and service that provides an integrated view of risk and return, and an analysis of market, credit, liquidity, and counterparty risk across asset classes; managed services, including consolidation of client portfolio data from various sources, review and reconciliation of input data and results, and customized reporting; and HedgePlatform to measure, evaluate, and monitor the risk of hedge fund investments.The ESG and Climate segment provides products and services that help institutional investors understand how ESG factors impact the long-term risk and return of their portfolio and individual security-level investments; and data, ratings, research, and tools to help investors navigate increasing regulation.The All Other – Private Assets segment includes real estate market and transaction data, benchmarks, return-analytics, climate assessments and market insights for funds, investors, and managers; business intelligence to real estate owners, managers, developers, and brokers; and offers investment decision support tools for private capital.


It serves asset owners and managers, financial intermediaries, wealth managers, real estate professionals, and corporates.MSCI Inc.was incorporated in 1998 and is headquartered in New York, New York.

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1.b. Last Insights on MSCI

MSCI Inc.'s recent performance was driven by strong Q3 earnings, with double-digit earnings growth and recurring revenue gains. The company's quarterly earnings of $4.47 per share beat estimates, driven by robust demand for its decision support tools and services. MSCI's expansion into private assets, including the launch of MSCI PACS, a proprietary asset classification framework, and new data and analytics solutions, has enhanced its offerings. Additionally, its strategic collaboration with PNC Bank to provide personalized wealth management solutions has further solidified its position.

1.c. Company Highlights

2. MSCI's Strong Q3 2025 Earnings: A Testament to its Durable Solutions and Innovation

MSCI delivered a robust financial performance in Q3 2025, with organic revenue growth of 9%, adjusted EBITDA growth of 10%, and adjusted earnings per share growth of over 15%. The company's actual EPS came out at $4.47, beating estimates of $4.38. The strong growth was driven by a 17% asset-based fee run rate growth, fueled by record AUM levels in both ETF and non-ETF products linked to MSCI indices. The company's Index and Analytics segments saw significant growth, with recurring net new subscription sales growth of 27% and 16%, respectively.

Publication Date: Oct -29

📋 Highlights
  • Strong Financial Growth: Organic revenue grew 9%, adjusted EBITDA rose 10%, and adjusted EPS increased over 15% in Q3 2025.
  • Aggressive Share Repurchases: $1.25B repurchased in Q3, totaling $1.5B YTD, with an additional $3B authorization for future buybacks.
  • Index Sales Surge: Recurring net new subscription sales grew 27% in Index (43% in Americas), driven by asset-based fee run rate growth of 17%.
  • Analytics Expansion: Analytics saw 16% recurring net new sales growth, fueled by hedge fund adoption of risk tools and equity models.
  • AI-Driven Efficiency: AI integration saved $15-20M in 2025 revenue and reduced costs, with 15-20 AI projects enhancing data capture and product development.

Financial Performance

The company's financial performance was characterized by strong revenue growth, driven by its mission-critical, durable solutions and accelerating pace of innovation. MSCI's total run rate growth was over 10%, with asset-based fee run rate growth of 17%. The company's adjusted EBITDA margin was also robust, driven by operating leverage. MSCI's free cash flow guidance was increased, reflecting the company's strong growth momentum.

Segment Performance

MSCI's client segments, including hedge funds, wealth managers, asset owners, banks, and broker-dealers, and asset managers, all saw strong growth. The company's hedge fund segment was particularly strong, with 21% recurring net new subscription sales growth. MSCI's Analytics segment saw strong adoption of risk tools and equity models by multi-strategy hedge funds, driving 16% recurring net new sales growth.

Innovation and AI Integration

MSCI has been focused on developing solutions for private credit, including terms and conditions on loans, credit assessments, and market risk measurements. The company has also launched a number of private credit indices to provide benchmarks for the industry. MSCI has made significant investments in AI, which is becoming a key component of its business. According to Henry Fernandez, "AI will dramatically increase MSCI's margins by reducing costs and enabling the creation of new products."

Valuation

MSCI's valuation metrics suggest that the company's strong growth momentum is partially priced in. The stock trades at a P/E Ratio of 37.46, EV/EBITDA of 29.86, and P/S Ratio of 15.03. While the valuation is rich, MSCI's high ROIC (35.3%) and ROE (albeit negative due to accounting treatments) suggest that the company's profitability is strong. The Dividend Yield is 1.18%, and the Free Cash Flow Yield is 3.21%, indicating a reasonable return for shareholders.

Outlook

MSCI's full-year guidance reflects the company's strong growth, with an increase in the low end of the expense guidance range and an increase in free cash flow guidance. Analysts estimate next year's revenue growth at 8.8%, indicating a continued strong momentum. The company's focus on innovation, AI integration, and expansion into new client segments positions it well for long-term growth.

3. NewsRoom

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MSCI Inc. (MSCI) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Top 15 High-Growth Dividend Stocks For December 2025

Dec -02

Source: seekingalpha.com

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Love ETFs? Thank You For Your Cash: MSCI

Nov -30

Source: seekingalpha.com

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MS Global Franchise Portfolio's Strategic Moves: Synopsys Inc. Takes Center Stage

Nov -26

Source: gurufocus.com

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MSCI Publishes Investor Presentation

Nov -25

Source: businesswire.com

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MSCI Inc. (MSCI) Presents at Global Technology, Internet, Media & Telecommunications Conference 2025 Transcript

Nov -19

Source: seekingalpha.com

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MSCI Publishes Corporate Responsibility Presentation for Investors

Nov -19

Source: businesswire.com

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MSCI Inc. (MSCI) Presents at J.P. Morgan 2025 Ultimate Services Investor Conference Transcript

Nov -18

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.25%)

6. Segments

Index

Expected Growth: 8.5%

The MSCI index growth of 8.5% is driven by strong corporate earnings, economic expansion, and investor sentiment. Key sectors contributing to this growth include technology, healthcare, and consumer staples, which have seen significant investments and innovation. Additionally, emerging markets have shown resilience, further fueling the index's upward trajectory.

Analytics

Expected Growth: 10.2%

MSCI's 10.2% growth is driven by increasing demand for analytics and indexing solutions, expansion of its ESG and climate solutions, and rising adoption of its data and analytics platforms by asset managers and institutional investors, reflecting the growing need for data-driven investment decisions and risk management.

Sustainability and Climate

Expected Growth: 12.1%

The 12.1% growth in Sustainability and Climate segment from MSCI Inc. is driven by increasing investor demand for ESG (Environmental, Social, and Governance) integration, climate risk assessment, and regulatory pressures. Rising awareness of sustainability issues and growing need for climate-related data and analytics also fuel this growth.

All Other - Private Assets

Expected Growth: 7.8%

The 7.8% growth in All Other - Private Assets from MSCI Inc. is driven by increasing demand for alternative investments, rising adoption of private equity and real assets, and expanding market coverage. This growth is also fueled by MSCI's strategic acquisitions and enhancements in data and analytics capabilities, catering to evolving investor needs.

7. Detailed Products

MSCI Indexes

A comprehensive range of indexes that provide investors with a way to track and benchmark their investments across various asset classes, regions, and sectors.

MSCI Analytics

A suite of tools and services that provide in-depth analysis and insights on equity, fixed income, and multi-asset portfolios, helping investors to make more informed decisions.

MSCI ESG (Environmental, Social, and Governance) Ratings

A comprehensive framework for assessing the ESG performance of companies, providing investors with a way to evaluate and compare the sustainability of their investments.

MSCI Real Estate

A range of products and services that provide investors with insights and analysis on the commercial real estate market, including property indexes, analytics, and data.

MSCI Wealth and Asset Management

A suite of products and services that provide wealth managers and asset managers with tools and insights to help them grow their businesses and serve their clients.

MSCI Barra

A range of risk management and portfolio optimization tools that provide investors with a way to manage risk and optimize their portfolios.

8. MSCI Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

MSCI Inc. provides critical financial indexes and analytics to the investment community, making it difficult for customers to switch to substitutes. The company's indexes and analytics are widely used and recognized as industry standards, reducing the threat of substitutes.

Bargaining Power Of Customers

MSCI Inc.'s customers, such as investment managers and asset owners, have some bargaining power due to the availability of alternative index providers. However, MSCI's strong brand and reputation, as well as its comprehensive product offerings, limit the customers' ability to negotiate significantly.

Bargaining Power Of Suppliers

MSCI Inc. relies on data and information from various sources, but it has a large and diversified supplier base. The company also has significant control over its supply chain, reducing the bargaining power of its suppliers.

Threat Of New Entrants

The barriers to entry in the financial index and analytics industry are high, with significant investments required in data collection, research, and technology. MSCI Inc.'s established brand and reputation, as well as its extensive product offerings, make it difficult for new entrants to compete.

Intensity Of Rivalry

The financial index and analytics industry is competitive, with several established players, including S&P Dow Jones Indices, FTSE Russell, and Bloomberg. However, MSCI Inc. has a strong market position and a differentiated product offering, reducing the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 125.46%
Debt Cost 4.90%
Equity Weight -25.46%
Equity Cost 10.68%
WACC 3.42%
Leverage -492.76%

11. Quality Control: MSCI Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CME Group

A-Score: 7.1/10

Value: 2.0

Growth: 5.9

Quality: 8.5

Yield: 8.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Capital One

A-Score: 5.9/10

Value: 4.4

Growth: 6.3

Quality: 6.3

Yield: 3.0

Momentum: 8.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Nasdaq

A-Score: 5.7/10

Value: 2.2

Growth: 5.8

Quality: 6.7

Yield: 3.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
ICE

A-Score: 5.4/10

Value: 2.7

Growth: 6.1

Quality: 6.7

Yield: 2.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
MSCI

A-Score: 5.3/10

Value: 2.8

Growth: 7.9

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
S&P Global

A-Score: 5.1/10

Value: 1.5

Growth: 6.7

Quality: 8.0

Yield: 1.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

540.85$

Current Price

540.85$

Potential

-0.00%

Expected Cash-Flows