Financial - Capital Markets · NYSE
Current Price
$187.07
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Morgan Stanley with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Morgan Stanley, a financial holding company, provides various financial products and services to corporations, governments, financial institutions, and individuals in the Americas, Europe, the Middle East, Africa, and Asia. It operates through Institutional Securities, Wealth Management, and Investment Management segments. The Institutional Securities segment offers capital raising and financial advisory services, including services related to the underwriting of debt, equity, and other securities, as well as advice on mergers and acquisitions, restructurings, real estate, and project finance. This segment also provides sales and trading services, such as sales, financing, prime brokerage, and market-making services in equity and fixed income products consisting of foreign exchange and commodities; corporate and commercial real estate loans, which provides secured lending facilities and financing for sales and trading customers, and asset-backed and mortgage lending; and wealth management services, investment, and research services. The Wealth Management segment offers financial advisor-led brokerage and investment advisory services; self-directed brokerage services; financial and wealth planning services; workplace services, including stock plan administration; annuity and insurance products; securities-based lending, residential real estate loans, and other lending products; banking; and retirement plan services to individual investors and small to medium-sized businesses and institutions. The Investment Management segment provides equity, fixed income, liquidity, and alternative/other products to benefit/defined contribution plans, foundations, endowments, government entities, sovereign wealth funds, insurance companies, and third-party fund sponsors and corporations through institutional and intermediary channels. Morgan Stanley was founded in 1924 and is headquartered in New York, New York.
ROIC (TTM)
1.8%
ROE (TTM)
16.7%
FCF Yield
-6.02%
Based on trailing twelve-month data, MS shows a free cash flow per share of N/A and a ROIC of 1.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -6.02% are important context metrics when evaluating MS's stock valuation relative to peers.
The intrinsic value of MS depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether MS is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $187.07. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Morgan Stanley: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Financial - Capital Markets industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MS's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Morgan Stanley, this means projecting how much free cash flow the Financial - Capital Markets will produce over the next 5-10 years, then discounting those amounts to today's dollars. MS's ROIC of 1.8% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For MS, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
