Moody's shares have fallen to $455 over the last six months, a 10.7% decline that contrasts with the S&P 500's 9% gain. The company's annualized revenue growth of 12.4% over the past two years exceeds its five-year trend, while earnings per share grew at a 22.5% compound annual rate over the same period, indicating improving profitability. Moody's has averaged a return on equity of 59.3% over the last five years, far above the sector average of around 10%. The stock currently trades at 26.3 times forward price-to-earnings.
Moodys CorporationStock price decline despite strong earnings growth and high ROE; valuation at 26.3x forward P/E.
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