Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 27 Jul 2026
MSCI· Financial Services
MSCI
MSCI Inc. boasts a strong moat with exceptional ROIC but faces valuation challenges at a P/E of 34.3.
Buffett fit
Strong fit
Owner
93
Durability
95
Management
96
Price
13
Score updated 26 Sept 2026 · analysis from 27 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned 100% of MSCI, I'd be encouraged by its 15.35% EPS CAGR over the last five years, indicating solid growth potential.
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MSCI has demonstrated durability with a consistent 5-year EPS growth rate and no profitable year losses, which aligns with Buffett's 10-year test for owning stocks.
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Management has effectively reduced share count by 1.66% over the last five years, indicating a commitment to returning value to shareholders through , evidenced by a buyback yield of 2.43%.
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The current yield of 3.44% is below the 8-10% target range that Buffett prefers for a .
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 38.5% far exceeds the sector top-quintile cutoff of 10.6%.
- 2 of 82.9% indicates strong within the investment management space.
- 3Five-year EPS CAGR of 15.35% shows robust growth potential.
- 4Share count has decreased at a CAGR of -1.66%, reflecting disciplined .
Concerns
5- 1 of 34.3 indicates a high valuation, potentially limiting upside.
- 2 of 55.4% is below the sector top-quintile cutoff of 58.3%.
- 3Net debt/EBITDA of 3.10 raises concerns about financial .
- 4Current ratio of 0.86 suggests liquidity issues, as it falls below the ideal threshold.
Price history
$619-5.3%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
MSCI provides investment decision support tools through four segments: Index, Analytics, ESG and Climate, and All Other Private Assets. The Index segment generates significant revenue through licensing fees for indexes used in ETFs and mutual funds, contributing to a total revenue of $3.13B. The company's high of 82.9% reflects its strong and efficient operations.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 29, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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