S&P Global (SPGI) Margins Improve, Reinforcing Bullish Narratives Despite Valuation Concerns

S&P Global (SPGI) reported EPS growth of 20.7% over the past year, well above its five-year average of 7.9%. Net profit margins improved to 27.3% from last year’s 25%. Despite this strong performance, shares trade at $491.57, notably above the estimated fair value of $294.28, and the company’s Price-To-Earnings Ratio of 37.4x remains a premium against industry peers. The combination of consistent profit growth, expanding margins, and high-quality earnings is keeping sentiment upbeat. However, forecasts point toward slower growth than the broader US market and highlight the need for valuation caution.

See our full analysis for S&P Global.

Next, we will see how these headline figures measure up against the narratives driving sentiment, highlighting where earnings results support market confidence and where expectations could be re-examined.

Curious how numbers become stories that shape markets? Explore Community NarrativesNYSE:SPGI Earnings & Revenue History as at Oct 2025

Margins Improve as Costs Stay in Check

Net profit margins rose to 27.3%, up from 25% last year, while earnings growth accelerated to 20.7% versus the five-year average of 7.9%. Bulls often point to the combination of higher margins and strong earnings quality as evidence that S&P Global can handle competitive pressure from peers.

Net profit margins topping last year’s level strongly supports the bullish case that S&P Global continues to defend its market-leading position through cost discipline. Earnings growth well above the company’s historical average suggests operations are running more efficiently, supporting claims that business fundamentals are solid, not just cyclical.

Growth Outlook Trails Broader Market

Revenue is forecast to rise just 6.3% annually and earnings 10.2% per year, both below US market averages of 10.3% and 15.9% respectively. Bears argue that slower forecasted expansion may limit S&P Global’s ability to justify its valuation premium over the medium term.

Predicted revenue and earnings growth lags the broader market, directly challenging the case that S&P Global deserves to trade at a higher forward multiple than its peers. With growth prospects falling short of the sector, critics highlight that any disappointment or change in market sentiment could trigger a sharper pullback given the stock’s current pricing.

Premium Pricing Outpaces Peers

The stock is trading at $491.57, significantly higher than its DCF fair value of $294.28, and its 37.4x Price-To-Earnings Ratio remains far above the industry average of 25.6x and peer group at 30.4x. Despite this steep valuation, prevailing market view holds that S&P Global’s stable business model and position as an “essential” data provider justify the premium, even if current growth rates are moderate.

Shares still sit below the analyst price target of $612.41, which is often used to reinforce the idea that upside potential remains for long-term holders if the company can deliver on innovation and steady fundamentals. The absence of meaningful insider selling supports confidence that management believes in the long-term outlook, but the high price tag makes the shares especially vulnerable if sector momentum fades.

Story Continues

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on S&P Global's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

S&P Global’s growth outlook trails the US market and its steep valuation premium leaves little margin for error if momentum slows.

If premium pricing or slower forecasts make you uneasy, find companies trading on more attractive terms with these 831 undervalued stocks based on cash flows that could offer stronger value for your portfolio.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SPGI.

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