Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

MSCI Sports A Rich Valuation, Slowing Growth, And Increasing Competition

Investment products firm MSCI Inc (NYSE:MSCI) is probably best known for their pioneering development of global equity indices which they license to various asset managers. But while those innovative products have served the firm well for a long time and made shareholders a lot of money, revenue growth at the firm seems to be slowing and the company trades at a hefty 21.5X CY 2013 earnings per share. Given that steep price, investors should take a hard look at their stake in the firm and consider if this may be the time to cash out.

MSCI has grown revenues pretty consistently and nicely over the last five years, and earnings growth has been fantastic as the chart below...

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