Morgan Stanley (MS) Stock Valuation — PE Analysis
Financial - Capital Markets · NYSE
Current Price
$214.04
PE Ratio (TTM)
18.5x
Intrinsic Value
$335.58
+36.2% margin of safety
COMPETITIVE MOAT
↑Global Wealth Management Scale
Morgan Stanley's extensive global wealth management platform attracts and retains high-net-worth clients. This scale provides a stable, recurring revenue stream and significant cross-selling opportunities.
↑Investment Banking Dominance
The firm's strong reputation and deep relationships in investment banking, particularly in M&A and capital markets, create a powerful network effect. This allows them to win lucrative mandates and attract top talent.
↑Digital Asset Integration
Early adoption and partnerships in digital assets, like the crypto ETP referral with Galaxy Digital, position Morgan Stanley to capture future growth in this evolving market. This caters to a new generation of investors.
INVESTMENT RISKS
↓Regulatory Scrutiny
As a major financial institution, Morgan Stanley faces constant and evolving regulatory oversight. Changes in regulations can impact profitability and operational flexibility.
↓Market Volatility Impact
The firm's performance is highly sensitive to broader market conditions and economic cycles. Significant dips, as recently observed, can impact revenue and investor sentiment.
↓Intense Competition
The capital markets and wealth management sectors are highly competitive. Banks like Goldman Sachs, BofA, and JPM are actively vying for similar high-profile deals and clients, as seen with the SpaceX IPO events.
Base case
MS base case PE valuation
A base case PE valuation for MS estimates a fair value of about $335.58 per share, against a current price of $214.04. The model assumes 15.7% annual earnings growth, a 18x target PE multiple, and a 10% discount rate.
Intrinsic Value
$335.58
Margin of safety
+36.2%
Expected annual return
+9.4%
Base case assumptions: 15.7% annual earnings growth, 18x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the MS PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Morgan Stanley respond.
Open PE Calculator for MSCompany Overview
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.
Financial Metrics — MS PE Stock Valuation Data
PE Ratio (TTM)
18.5x
PEG Ratio
0.64
Earnings Yield
5.41%
ROE (TTM)
16.4%
Revenue/Share (TTM)
$76.53
Dividend Yield
1.87%
Debt/Equity
3.45x
Frequently Asked Questions
What is the PE ratio of MS?
The trailing twelve-month PE ratio of MS reflects how much investors pay per dollar of Morgan Stanley's earnings. This metric is most useful when compared to Financial - Capital Markets peers and the company's own historical range.
Is MS overvalued based on PE ratio?
MS's PE of 18.5x combined with a PEG ratio of 0.64 provides a growth-adjusted perspective. A PEG below 1.0 suggests MS may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Financial - Capital Markets, a DCF analysis may be more appropriate.
How do I value MS stock using PE ratio?
To value Morgan Stanley using PE: (1) Compare the current PE (18.5x) against the Financial - Capital Markets median to assess relative pricing, (2) check the PEG ratio (0.64) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of MS?
MS's PEG ratio is 0.64, calculated by dividing the PE ratio (18.5x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for MS stock valuation?
PE ratio gives a quick relative read — how MS is priced versus Financial - Capital Markets peers. DCF provides an absolute value based on projected free cash flows. For MS, with a strong ROE of 16.4%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See MS DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value MS with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.