MS

Morgan Stanley

Fundamental data last updated:August 20, 2026

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company profile

SECTOR

Financial Services

industry

Financial - Capital Markets

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Morgan Stanley operates as a prominent financial holding company, delivering a comprehensive suite of financial solutions and services. Its diverse clientele spans major corporations, governmental bodies, financial institutions, and individual clients across various global regions, including the Americas, Europe, the Middle East, Africa, and Asia. The firm's operations are structured into three primary divisions: Institutional Securities, Wealth Management, and Investment Management. Within the Institutional Securities segment, Morgan Stanley provides crucial capital-raising and strategic financial advisory services. This includes underwriting activities for debt, equity, and other financial instruments, alongside expert counsel on mergers and acquisitions, corporate reorganizations, real estate transactions, and project financing. Furthermore, this division is a key player in sales and trading, offering services like sales execution, financing solutions, prime brokerage, and market-making across equity and fixed-income products, encompassing foreign exchange and commodities. It also extends corporate and commercial real estate loans, furnishes secured lending facilities, supports sales and trading clients with financing, and engages in asset-backed and mortgage lending. Investment and research services, along with specific wealth management offerings, are also part of this segment. The Wealth Management segment caters to individual investors, as well as small to medium-sized enterprises and institutions. It offers a broad spectrum of services, from financial advisor-led and self-directed brokerage and investment guidance to comprehensive financial and wealth planning. This segment also delivers workplace solutions, such as stock plan administration, and provides annuity and insurance products. Lending options include securities-backed loans, residential real estate mortgages, and other credit facilities, complemented by banking and retirement plan services. Finally, the Investment Management segment is dedicated to providing specialized investment products, including equity, fixed income, liquidity, and alternative strategies. These offerings are distributed through institutional and intermediary channels to a sophisticated client base that features benefit and defined contribution plans, foundations, endowments, governmental entities, sovereign wealth funds, insurance companies, and corporate and third-party fund sponsors. Morgan Stanley's origins trace back to its founding in 1924, and its global headquarters are situated in New York, New York.

 


VALUATION

P/E

19.19

Market Cap ($M USD)

$350.31B

Forward P/E

14.05

PEG

0.38

PRICE TO SALES

2.91

PRICE TO BOOK

3.05

EV / EBITDA

21.88

5-Year Average P/E

Free Cash Flow Yield

-0.30%

DCF Value

$20.22

Graham Number

$137.64

Price to FCF

-333.00

EV to FCF

-580.82

Earnings Yield

5.21%

FCF Yield

-0.30%

DIVIDEND

Yield

1.80%

Annual Payout

$4.00

Payout Ratio

36.76%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$11.57

Next Year EPS Growth Estimate

$15.81

Next Year Revenue Growth Estimate

$96.38B

Return on Equity (ROE)

16.38%

FREE CASH FLOW

Operating Margin

19.48%

Debt-to-Equity

4.26

Piotroski F-Score

5

Altman Z-Score

0.68

Return on Invested Capital (ROIC)

2.56%

Current Ratio

1.61

Quick Ratio

1.61

Net Debt to EBITDA

9.33

Interest Coverage

0.47

Gross Profit margin

57.99%

FCF PER SHARE

$-0.67

REVENUE PER SHARE

$76.53

Gainseekers Quantitative Analysis

Summary

Morgan Stanley’s valuation paints a complex picture. Despite a robust Forward P/E of 13.49, suggesting potential growth, the stock traded significantly above its DCF Value, indicating possible overvaluation. The Earnings Yield of 5.54% is decent, yet the Altman Z-score of 0.68 raises red flags about financial distress. The market seems to be pricing in perfection, ignoring the underlying risks highlighted by the low Z-score. The Graham Number further underscores this disconnect, suggesting the stock may be overextended.

AI Exposure / Tech Reliance

Operating within the Financial - Capital Markets industry, Morgan Stanley is well-positioned to leverage AI and tech advancements. As a major player, it can integrate AI for enhanced trading algorithms and risk management. This adaptability is crucial for maintaining a competitive edge in an evolving financial landscape.

The Bull Case

For the value-driven investor, Morgan Stanley offers compelling reasons to buy. The company boasts a Return on Equity of 16.38%, reflecting strong capital efficiency. Despite a negative FCF Yield, its Operating Margin of 19.48% and a Piotroski F-Score of 5 indicate solid operational health. These metrics suggest that Morgan Stanley has the pricing power and strategic acumen to navigate economic cycles effectively.

The Bear Case

However, the bear case cannot be ignored. The Price/Book ratio of 2.87 and Price/Sales of 2.74 suggest the stock is not cheap. The negative Free Cash Flow Yield and a staggering Price to FCF ratio of -313.40 highlight severe cash flow issues. Additionally, the stock's proximity to its 52-week high raises concerns about technical overextension, making it vulnerable to a correction.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$212.75

Institutional Ownership %

1-Year Beta

1.22

Insider Buying % (6 Mo)

Distance to 52-Week High

3.77%

Distance to 52-Week Low

39.10%

EARNINGS SURPRISE %

13.58%

50-DAY SMA

$204.47

200-DAY SMA

$178.78

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.