Download PDF

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.

Show Full description

1.b. Last Insights on MSCI

Breaking News: MSCI Inc recently reported its quarterly earnings. The company's revenue for the quarter was 592 million dollars. The reported EPS was 1.85 dollars. MSCI Inc's operating metrics also showed an increase in subscription revenue. The company announced a quarterly dividend of 0.75 dollars per share. Several analysts have given a buy recommendation for MSCI Inc including those from Morgan Stanley and Goldman Sachs. Other analysts from firms like Deutsche Bank have given a hold recommendation. There are no sell recommendations from major firms as of now on MSCI Inc.

1.c. Company Highlights

2. MSCI's Strong Q4 2025 Earnings: A Testament to its Leadership in the Global Investment Ecosystem

MSCI reported a robust financial performance in Q4 2025, with organic revenue growth of over 10%, adjusted EBITDA growth of over 13%, and adjusted EPS growth of almost 12% for the quarter, beating analyst estimates of $4.6 with an actual EPS of $4.66. The company's strong financial performance was driven by its leadership in the global investment ecosystem, relentless focus on innovation, and attractive all-weather franchise.

Publication Date: 08:23

📋 Highlights
  • Strong Financial Performance:: Q4 2025 organic revenue growth of 10%, adjusted EBITDA up 13%, and adjusted EPS rose 12% (14% YoY full-year).
  • Index & Asset-Based Fee Growth:: Index subscription run rate grew 9.4%, while asset-based fee run rate surged 26%, with $67B in ETF inflows linked to MSCI indexes.
  • AI-Driven Innovation:: AI expanded into product lines (e.g., Analytics, custom index creation) after 3-4 years of operational use, enhancing efficiency and client tools.
  • Global Market Shift:: Rising international flows in Europe and Asia Pacific (vs. U.S. focus), driving new sales opportunities and potential pricing flexibility.
  • Strategic Cash Position:: $515M ending cash balance, with plans to modestly pay down revolver, reflecting strong capital management and operating leverage.

Revenue Growth and Margin Expansion

The company's index subscription run rate growth of 9.4% and asset-based fee run rate growth of 26% in Q4 2025 were notable highlights. The record inflows of $67 billion into ETFs linked to MSCI indexes in Q4 2025 also underscored the company's strong market position. With a guidance of continued investment initiatives fueling future top-line growth, MSCI is well-positioned to maintain its momentum.

Innovation and Product Development

MSCI's accelerating pace of innovation and solid momentum in delivering new products and capabilities were evident in its Q4 2025 performance. The company's focus on AI-enabled offerings, such as custom index creation capability, is expected to drive future growth. As Henry Fernandez noted, AI is a "godsend" for MSCI, enabling cost reductions and investment in new areas.

Valuation and Outlook

With a P/E Ratio of 40.09 and EV/EBITDA of 27.32, MSCI's valuation suggests that the market is pricing in a certain level of growth and profitability. Analysts estimate next year's revenue growth at 8.5%, which is slightly lower than the company's historical growth rate. However, with its strong financial performance, robust product development pipeline, and attractive all-weather franchise, MSCI is well-positioned to continue its momentum.

Private Markets and Tokenization

MSCI's efforts in private markets are paying off, with the company seeing significant growth in areas like total plan offering and transparency offerings. The potential impact of tokenization on the private asset market could be a significant catalyst for MSCI, enabling the creation of evaluated prices, credit risk, and portfolio tools.

Client Dynamics and Retention

3. NewsRoom

Card image cap

Top 15 High-Growth Dividend Stocks For February 2026

Feb -02

Source: seekingalpha.com

Card image cap

Harbor Small Cap Growth Fund Q4 2025 Portfolio Performance

Jan -30

Source: seekingalpha.com

Card image cap

Buy These 4 Stocks That Recently Announced Dividend Hikes

Jan -29

Source: zacks.com

Card image cap

MSCI Inc. (MSCI) Q4 2025 Earnings Call Transcript

Jan -28

Source: seekingalpha.com

Card image cap

MSCI: Simply A Solid Investment

Jan -28

Source: seekingalpha.com

Card image cap

MSCI Q4 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Down

Jan -28

Source: zacks.com

Card image cap

MSCI (MSCI) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Jan -28

Source: zacks.com

Card image cap

MSCI (MSCI) Q4 Earnings Beat Estimates

Jan -28

Source: zacks.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: 7.2/10

Value: 2.3

Growth: 5.9

Quality: 8.6

Yield: 8.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Nasdaq

A-Score: 5.6/10

Value: 1.8

Growth: 5.7

Quality: 7.0

Yield: 3.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
ICE

A-Score: 5.6/10

Value: 2.5

Growth: 6.1

Quality: 6.9

Yield: 2.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
MSCI

A-Score: 5.5/10

Value: 2.8

Growth: 7.9

Quality: 7.5

Yield: 2.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Capital One

A-Score: 5.5/10

Value: 4.1

Growth: 6.3

Quality: 5.4

Yield: 3.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
S&P Global

A-Score: 5.3/10

Value: 1.6

Growth: 6.7

Quality: 8.1

Yield: 1.0

Momentum: 5.0

Volatility: 9.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

581.48$

Current Price

581.48$

Potential

-0.00%

Expected Cash-Flows