Morgan Stanley's valuation seems compelling with a Price Sales ratio of
2.62 and a book value of
$55.60 per share, suggesting that the stock may be undervalued. However, with a payout ratio of
60.39%, investors might be concerned about the company's ability to sustain its dividend payments, especially if its growth momentum is indeed slowing.
Important Takeaways
Morgan Stanley has reported total liabilities of $276.39 billion, with a debt to equity ratio (D/E) of 3.42. This suggests that the company relies significantly on debt financing. However, with a current ratio of 1.96, its financial position is generally considered stable. Despite the high reliance on debt, it can still be an effective tool for Morgan Stanley to invest in high-return growth opportunities. Macroaxis offers trading recommendations on Morgan Stanley to validate and supplement current analyst consensus. Our advice engine evaluates the company's growth potential solely based on an investor's current risk tolerance and investment horizon.
We determine the current worth of Morgan Stanley using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Morgan Stanley based exclusively on its
fundamental and basic
technical indicators. By analyzing Morgan Stanley's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Morgan Stanley's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Morgan Stanley. We calculate exposure to Morgan Stanley's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Morgan Stanley's related companies.
Morgan Stanley Investment Alerts
Morgan investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Morgan Stanley performance across your portfolios.Please check all
investment alerts for Morgan
Morgan Stanley Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Morgan value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Morgan Stanley competition to find
correlations between indicators driving the intrinsic value of Morgan.
Morgan Stanley Gross Profit
Morgan Stanley Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Morgan Stanley previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Morgan Stanley Gross Profit growth over the last 10 years. Please check Morgan Stanley's
gross profit and other
fundamental indicators for more details.
Another Deeper Perspective
The modest gains experienced by current holders of Morgan Stanley may encourage private investors to take a closer look at the firm as it is trading at a share price of
95.50 on
3,406,646 in trading volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in
May. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.32. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
| 2021 | 2022 | 2023 | 2024 (projected) |
Interest Expense | 1.4B | 12.3B | 42.1B | 44.2B | Depreciation And Amortization | 4.2B | 4.0B | 4.3B | 4.5B |
Margins Breakdown
Morgan profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Morgan Stanley itself as indicators of financial health and management effectiveness.
Please look more closely at the different varieties of Morgan Stanley profit margins.
0.41
Operating Profit Margin
| Pretax Profit Margin | 0.18 |
| Operating Profit Margin | 0.41 |
| Net Profit Margin | 0.12 |
| Gross Profit Margin | 0.74 |
Morgan Stanley Market Cap is comparatively stable at the moment. Also, Morgan Stanley Enterprise Value is comparatively stable at the moment. Slow and steady wins the race, but Morgan Stanley's growth momentum seems to be losing steam. With a book value of 55.60 and operating income of 11.7B, the financial giant is currently valued at a market capitalization of 155.2B. However, a lukewarm five-year return of 2.52% and a potential downside deviation of 1.5 signal potential risks. The firm's forward dividend rate of 3.4 and payout ratio of 60.39% are also indicators of modest returns. Nonetheless, the stock's beta of 1.37 suggests a higher volatility than the market, offering a potential upside of 2.47 for risk-tolerant investors..
Morgan is expecting lower volatility in July
The recent drop in Morgan Stanley's Sortino ratio to 0.11 suggests a potential decrease in the stock's volatility. This ratio measures the risk-adjusted return of an investment, indicating that the risk of negative returns is currently low. This implies that Morgan Stanley's stock may see less volatility in July, offering a potentially stable investment opportunity for risk-averse investors. Morgan Stanley's stock has relatively low volatility, with a skewness of -0.7 and a kurtosis of 3.48. Understanding market volatility trends can help investors time the market. Using volatility indicators properly allows traders to gauge Morgan Stanley's stock risk against market volatility during both bullish and bearish trends.
The increased volatility that accompanies bear markets can directly affect Morgan Stanley's stock price, causing investor stress as share values drop, often prompting portfolio rebalancing.In conclusion, Morgan Stanley (USA Stocks: MS) has been showing a slow but steady growth, with a current valuation market value of
$95.5. The stock's real value is estimated at
$98.78, indicating a potential upside. Analysts have a consensus of 'Buy' with 3 'Buys', 5 'Strong Buys', and 16 'Holds'. The highest estimated target price stands at $95.76, while the lowest is at $78.51. The possible upside price is $97.93, suggesting that there is room for growth. However, investors should also consider the possible downside price of $95.29. Therefore, while the stock is advancing slowly, it is advisable for investors to keep a close eye on the market trends and analyst recommendations before making a decision..
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Morgan Stanley. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
[email protected]
