MSCI Testing Price Floor: Time to Load Up?

September 4th, 2025 by Trefis Team
MSCI: MSCI logo
MSCI
MSCI

MSCI (MSCI) should be on your watchlist. Here is why – it is currently trading in the support zone ($524.03 – $579.19), levels from which it has bounced meaningfully before. In the last 10 years, the stock received buying interest at this level 3 times and subsequently went on to generate 15.6% in average peak returns.

  Peak Return Days to Peak Return
7/8/2021 22.4% 131
8/13/2024 17.0% 121
4/9/2025 7.4% 89

But is the price action enough alone? It certainly helps if the fundamentals check out. For MSCI Read Buy or Sell MSCI Stock to see how convincing this buy opportunity might be.

Here are some quick data points:

  • Revenue Growth: 10.5% LTM and 11.1% last 3 year average.
  • Cash Generation: Nearly 45.5% free cash flow margin and 53.9% operating margin LTM.
  • Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for MSCI was 7.9%.
  • Valuation: MSCI trades at a PE multiple of 36.4
  • Opportunity vs S&P: Compared to S&P, you get higher valuation, higher revenue growth, and better margins

MSCI provides investment decision support tools, including indexes, risk management, performance attribution, portfolio management, ESG, climate, and private asset solutions for global clients.

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  MSCI S&P Median
Sector Financials –
Industry Financial Exchanges & Data –
PE Ratio 36.4 24.0
   
LTM* Revenue Growth 10.5% 5.1%
3Y Average Annual Revenue Growth 11.1% 5.3%
Min Annual Revenue Growth Last 3Y 7.9% -0.1%
   
LTM* Operating Margin 53.9% 18.7%
3Y Average Operating Margin 53.9% 17.9%
LTM* Free Cash Flow Margin 45.5% 13.2%

*LTM: Last Twelve Months

That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

What Is Stock-Specific Risk If The Market Crashes?

Keep in mind, even broad global stocks aren’t immune to big drops. The MSCI index fell nearly 70% in the Global Financial Crisis. The inflation shock saw a pullback of about 44%. Covid and the 2018 correction weren’t as severe but still took the market down around 32% and 26%, respectively. So, no matter how strong the fundamentals look, sharp declines happen. Risk is always there when panic hits.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.