Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin40.3%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin29.2%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt3.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$13.7B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital-$1.3B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book3.94x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$5.5B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income4.4%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$5.8B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About S&P Global Inc.
S&P Global Inc., together with its subsidiaries, provides benchmarks, data, analytics, and workflow solutions in the global capital, energy and commodity, and automotive markets. It operates through four segments: S&P Global Market Intelligence, S&P Global Ratings, S&P Global Energy, and S&P Dow Jones Indices. The S&P Global Market Intelligence segment provides multi-asset-class data and analytics integrated with purpose-built workflow solutions. This segment offers Data, Analytics & Insights, a desktop product suite that provides data, analytics, and third-party research for global finance and corporate professionals; research, reference data, market data, derived analytics, and valuation services; enterprise solutions, such as software and workflow solutions; and credit and risk solutions for selling Ratings' credit ratings and related data and research, analytics, and financial risk solutions. The S&P Global Ratings segment operates as an independent provider of credit ratings, research, and analytics offering investors information and independent benchmarks for their investment and financial decisions as well as access to the capital markets. The S&P Global Energy segment provides information and benchmark prices for the energy and commodity markets. The S&P Dow Jones Indices segment operates as an index provider that maintains various valuation and index benchmarks for investment advisors, wealth managers, and institutional investors. It has operations in the United States, European region, Asia, and internationally. S&P Global Inc. was founded in 1860 and is headquartered in New York, New York.
S&P Global Inc., together with its subsidiaries, provides benchmarks, data, analytics, and workflow solutions in the global capital, energy and commodity, and automotive markets. It operates through four segments: S&P Global Market Intelligence, S&P Global Ratings, S&P Global Energy, and S&P Dow Jones Indices. The S&P Global Market Intelligence segment provides multi-asset-class data and analytics integrated with purpose-built workflow solutions. This segment offers Data, Analytics & Insights, a desktop product suite that provides data, analytics, and third-party research for global finance and corporate professionals; research, reference data, market data, derived analytics, and valuation services; enterprise solutions, such as software and workflow solutions; and credit and risk solutions for selling Ratings' credit ratings and related data and research, analytics, and financial risk solutions. The S&P Global Ratings segment operates as an independent provider of credit ratings, research, and analytics offering investors information and independent benchmarks for their investment and financial decisions as well as access to the capital markets. The S&P Global Energy segment provides information and benchmark prices for the energy and commodity markets. The S&P Dow Jones Indices segment operates as an index provider that maintains various valuation and index benchmarks for investment advisors, wealth managers, and institutional investors. It has operations in the United States, European region, Asia, and internationally. S&P Global Inc. was founded in 1860 and is headquartered in New York, New York.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering S&P Global Inc. at $416.18.
The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.
At $416.18, the stock trades at a 123% premium to its Graham Number of $186.62. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
70.2%▲
69.3%▲
66.9%▲
66.4%•
N/A
Operating Margin %
40.3%▲
38.6%▲
32.4%▲
27.0%•
N/A
Net Income %
29.2%▲
27.1%▲
21.0%▼
29.0%•
N/A
Diluted EPS
14.66▲
12.35▲
8.23▼
10.20•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$61.2B
$60.2B
$60.6B
$61.8B
N/A
Total Debt
$13.6B▲
$11.9B▼
$12.0B▲
$11.5B•
N/A
Working Capital
-$1.3B▼
-$933M▲
-$982M▼
-$332M•
N/A
Years to Pay Debt
3.04
3.10
4.57
3.55
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$5.5B▼
$5.6B▲
$3.6B▲
$2.5B•
N/A
Owner Earnings
$5.8B
$5.1B
$3.9B
$4.3B
N/A
CapEx % of Net Income
4.4%
3.2%
5.4%
2.7%
N/A
Income Statement
2025
2024
2023
2022
2021
Tax Effect Of Unusual Items
64,848
12,898
-18,020
489,199
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
7,406,000
6,718,000
5,233,000
4,070,000
Total Unusual Items
287,000
60,000
-85,000
1,949,000
Total Unusual Items Excluding Goodwill
287,000
60,000
-85,000
1,949,000
Net Income From Continuing Operation Net Minority Interest
4,471,000
3,852,000
2,626,000
3,248,000
Reconciled Depreciation
1,179,000
1,173,000
1,143,000
1,013,000
Reconciled Cost Of Revenue
4,563,000
4,361,000
4,141,000
3,753,000
EBITDA
7,693,000
6,778,000
5,148,000
6,019,000
EBIT
6,514,000
5,605,000
4,005,000
5,006,000
Net Interest Income
-287,000
-297,000
-334,000
-304,000
Interest Expense
287,000
297,000
334,000
304,000
Normalized Income
4,248,848
3,804,898
2,692,980
1,788,199
Net Income From Continuing And Discontinued Operation
4,471,000
3,852,000
2,626,000
3,248,000
Total Expenses
9,159,000
8,730,000
8,443,000
8,162,000
Total Operating Income As Reported
6,478,000
5,580,000
4,020,000
4,944,000
Diluted Average Shares
305,100
311,900
318,900
318,500
Basic Average Shares
304,800
311,600
318,400
316,900
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
4,471,000
3,852,000
2,626,000
3,248,000
Net Income Common Stockholders
4,471,000
3,852,000
2,626,000
3,248,000
Net Income
4,471,000
3,852,000
2,626,000
3,248,000
Minority Interests
-349,000
-315,000
-267,000
-274,000
Net Income Including Noncontrolling Interests
4,820,000
4,167,000
2,893,000
3,522,000
Net Income Continuous Operations
4,820,000
4,167,000
2,893,000
3,522,000
Tax Provision
1,407,000
1,141,000
778,000
1,180,000
Pretax Income
6,227,000
5,308,000
3,671,000
4,702,000
Other Income Expense
337,000
127,000
-49,000
1,987,000
Other Non Operating Income Expenses
22,000
24,000
11,000
45,000
Special Income Charges
273,000
59,000
-70,000
1,890,000
Gain On Sale Of Business
273,000
59,000
-70,000
1,898,000
Other Special Charges
8,000
Earnings From Equity Interest
28,000
43,000
36,000
27,000
Gain On Sale Of Security
14,000
1,000
-15,000
59,000
Net Non Operating Interest Income Expense
-287,000
-297,000
-334,000
-304,000
Interest Expense Non Operating
287,000
297,000
334,000
304,000
Operating Income
6,177,000
5,478,000
4,054,000
3,019,000
Operating Expense
4,596,000
4,369,000
4,302,000
4,409,000
Depreciation Amortization Depletion Income Statement
1,179,000
1,173,000
1,143,000
1,013,000
Depreciation And Amortization In Income Statement
1,179,000
1,173,000
1,143,000
1,013,000
Amortization
1,069,000
1,077,000
1,042,000
905,000
Amortization Of Intangibles Income Statement
1,069,000
1,077,000
1,042,000
905,000
Depreciation Income Statement
110,000
96,000
101,000
108,000
Selling General And Administration
3,417,000
3,196,000
3,159,000
3,396,000
Gross Profit
10,773,000
9,847,000
8,356,000
7,428,000
Cost Of Revenue
4,563,000
4,361,000
4,141,000
3,753,000
Total Revenue
15,336,000
14,208,000
12,497,000
11,181,000
Operating Revenue
15,336,000
14,208,000
12,497,000
11,181,000
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
116,200
107,200
100,200
86,000
Ordinary Shares Number
298,800
307,800
314,800
329,000
Share Issued
415,000
415,000
415,000
415,000
Net Debt
11,343,000
9,732,000
10,169,000
9,670,000
Total Debt
13,582,000
11,933,000
12,000,000
11,533,000
Tangible Book Value
-21,619,000
-18,314,000
-18,048,000
-16,463,000
Invested Capital
44,215,000
44,557,000
45,659,000
47,344,000
Working Capital
-1,341,000
-933,000
-982,000
-332,000
Net Tangible Assets
-21,619,000
-18,314,000
-18,048,000
-16,463,000
Capital Lease Obligations
494,000
535,000
541,000
577,000
Common Stock Equity
31,127,000
33,159,000
34,200,000
36,388,000
Total Capitalization
43,497,000
44,553,000
45,612,000
47,118,000
Total Equity Gross Minority Interest
36,152,000
37,508,000
38,100,000
39,744,000
Minority Interest
5,025,000
4,349,000
3,900,000
3,356,000
Stockholders Equity
31,127,000
33,159,000
34,200,000
36,388,000
Gains Losses Not Affecting Retained Earnings
-697,000
-883,000
-763,000
-886,000
Other Equity Adjustments
-697,000
-883,000
-763,000
-886,000
Treasury Stock
36,374,000
31,671,000
28,411,000
25,347,000
Retained Earnings
23,666,000
20,977,000
18,728,000
17,784,000
Additional Paid In Capital
44,117,000
44,321,000
44,231,000
44,422,000
Capital Stock
415,000
415,000
415,000
415,000
Common Stock
415,000
415,000
415,000
415,000
Total Liabilities Net Minority Interest
25,048,000
22,713,000
22,489,000
22,040,000
Total Non Current Liabilities Net Minority Interest
17,411,000
16,321,000
16,364,000
16,041,000
Other Non Current Liabilities
1,107,000
815,000
522,000
489,000
Employee Benefits
178,000
180,000
199,000
180,000
Non Current Pension And Other Postretirement Benefit Plans
178,000
180,000
199,000
180,000
Non Current Deferred Liabilities
3,262,000
3,397,000
3,690,000
4,065,000
Non Current Deferred Taxes Liabilities
3,262,000
3,397,000
3,690,000
4,065,000
Long Term Debt And Capital Lease Obligation
12,864,000
11,929,000
11,953,000
11,307,000
Long Term Capital Lease Obligation
494,000
535,000
541,000
577,000
Long Term Debt
12,370,000
11,394,000
11,412,000
10,730,000
Current Liabilities
7,637,000
6,392,000
6,125,000
5,999,000
Other Current Liabilities
1,053,000
869,000
1,033,000
1,328,000
Current Deferred Liabilities
4,088,000
3,694,000
3,461,000
3,126,000
Current Deferred Revenue
4,088,000
3,694,000
3,461,000
3,126,000
Current Debt And Capital Lease Obligation
718,000
4,000
47,000
226,000
Current Capital Lease Obligation
118,000
96,000
Current Debt
718,000
4,000
47,000
226,000
Other Current Borrowings
4,000
47,000
226,000
Pensionand Other Post Retirement Benefit Plans Current
988,000
1,073,000
906,000
753,000
Payables And Accrued Expenses
790,000
752,000
678,000
566,000
Payables
790,000
752,000
678,000
566,000
Total Tax Payable
180,000
199,000
121,000
116,000
Income Tax Payable
180,000
199,000
121,000
116,000
Accounts Payable
610,000
553,000
557,000
450,000
Total Assets
61,200,000
60,221,000
60,589,000
61,784,000
Total Non Current Assets
54,904,000
54,762,000
55,446,000
56,117,000
Other Non Current Assets
610,000
591,000
536,000
562,000
Defined Pension Benefit
254,000
246,000
238,000
232,000
Investments And Advances
603,000
1,774,000
1,787,000
1,752,000
Long Term Equity Investment
603,000
1,774,000
1,787,000
1,752,000
Investmentsin Subsidiariesat Cost
603,000
1,774,000
1,787,000
1,752,000
Goodwill And Other Intangible Assets
52,746,000
51,473,000
52,248,000
52,851,000
Other Intangible Assets
16,271,000
16,556,000
17,398,000
18,306,000
Goodwill
36,475,000
34,917,000
34,850,000
34,545,000
Net PPE
691,000
678,000
637,000
720,000
Accumulated Depreciation
-861,000
-823,000
-794,000
-859,000
Gross PPE
1,552,000
1,501,000
1,431,000
1,579,000
Other Properties
413,000
413,000
379,000
423,000
Machinery Furniture Equipment
695,000
655,000
628,000
688,000
Properties
444,000
433,000
424,000
468,000
Current Assets
6,296,000
5,459,000
5,143,000
5,667,000
Other Current Assets
858,000
906,000
1,000,000
574,000
Assets Held For Sale Current
196,000
0
0
1,298,000
Restricted Cash
0
0
1,000
1,000
Prepaid Assets
574,000
323,000
Receivables
3,441,000
2,867,000
2,826,000
2,494,000
Accounts Receivable
3,441,000
2,867,000
2,826,000
2,494,000
Allowance For Doubtful Accounts Receivable
-50,000
-44,000
-54,000
-48,000
Gross Accounts Receivable
3,491,000
2,911,000
2,880,000
2,542,000
Cash Cash Equivalents And Short Term Investments
1,801,000
1,686,000
1,316,000
1,300,000
Other Short Term Investments
56,000
20,000
26,000
14,000
Cash And Cash Equivalents
1,745,000
1,666,000
1,290,000
1,286,000
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
5,456,000
5,565,000
3,567,000
2,514,000
Repurchase Of Capital Stock
-5,001,000
-3,301,000
-3,301,000
-12,004,000
Repayment Of Debt
-4,000
-47,000
0
-3,730,000
Issuance Of Debt
993,000
0
744,000
5,395,000
Capital Expenditure
-195,000
-124,000
-143,000
-89,000
Interest Paid Supplemental Data
390,000
391,000
369,000
240,000
Income Tax Paid Supplemental Data
1,502,000
1,159,000
1,279,000
1,555,000
End Cash Position
1,745,000
1,666,000
1,291,000
1,287,000
Beginning Cash Position
1,666,000
1,291,000
1,287,000
6,505,000
Effect Of Exchange Rate Changes
62,000
-61,000
12,000
-123,000
Changes In Cash
17,000
436,000
-8,000
-5,095,000
Financing Cash Flow
-4,930,000
-4,998,000
-4,280,000
-11,326,000
Cash Flow From Continuing Financing Activities
-4,930,000
-4,998,000
-4,280,000
-11,326,000
Net Other Financing Charges
-463,000
-516,000
-388,000
37,000
Proceeds From Stock Option Exercised
13,000
7,000
13,000
Cash Dividends Paid
-1,170,000
-1,134,000
-1,147,000
-1,024,000
Common Stock Dividend Paid
-1,170,000
-1,134,000
-1,147,000
-1,024,000
Net Common Stock Issuance
-5,001,000
-3,301,000
-3,301,000
-12,004,000
Common Stock Payments
-5,001,000
-3,301,000
-3,301,000
-12,004,000
Net Issuance Payments Of Debt
1,704,000
-47,000
556,000
1,665,000
Net Short Term Debt Issuance
715,000
0
-188,000
-32,000
Short Term Debt Payments
0
-188,000
-32,000
0
Net Long Term Debt Issuance
989,000
-47,000
744,000
1,697,000
Long Term Debt Payments
-4,000
-47,000
0
-3,698,000
Long Term Debt Issuance
993,000
0
744,000
5,395,000
Investing Cash Flow
-704,000
-255,000
562,000
3,628,000
Cash Flow From Continuing Investing Activities
-704,000
-255,000
562,000
3,628,000
Net Investment Purchase And Sale
-35,000
6,000
-13,000
-2,000
Net Business Purchase And Sale
-474,000
-137,000
718,000
3,719,000
Sale Of Business
1,549,000
168,000
1,014,000
3,719,000
Purchase Of Business
-2,023,000
-305,000
-296,000
-99,000
Capital Expenditure Reported
-195,000
-124,000
-143,000
-89,000
Operating Cash Flow
5,651,000
5,689,000
3,710,000
2,603,000
Cash Flow From Continuing Operating Activities
5,651,000
5,689,000
3,710,000
2,603,000
Change In Working Capital
-432,000
235,000
-460,000
-238,000
Change In Other Working Capital
172,000
374,000
265,000
107,000
Change In Other Current Liabilities
-81,000
-418,000
-277,000
-166,000
Change In Payables And Accrued Expense
-55,000
245,000
328,000
43,000
Change In Payable
-55,000
245,000
328,000
43,000
Change In Account Payable
-55,000
245,000
328,000
43,000
Change In Prepaid Assets
132,000
113,000
-485,000
-258,000
Change In Receivables
-600,000
-79,000
-291,000
36,000
Changes In Account Receivables
-600,000
-79,000
-291,000
36,000
Other Non Cash Items
324,000
206,000
246,000
319,000
Stock Based Compensation
236,000
247,000
171,000
214,000
Provisionand Write Offof Assets
39,000
43,000
28,000
24,000
Asset Impairment Charge
132,000
31,000
Deferred Tax
-242,000
-323,000
-381,000
-353,000
Deferred Income Tax
-242,000
-323,000
-381,000
-353,000
Depreciation Amortization Depletion
1,179,000
1,173,000
1,143,000
1,013,000
Depreciation And Amortization
1,179,000
1,173,000
1,143,000
1,013,000
Amortization Cash Flow
1,069,000
1,077,000
1,042,000
905,000
Amortization Of Intangibles
1,069,000
1,077,000
1,042,000
905,000
Depreciation
110,000
96,000
101,000
108,000
Operating Gains Losses
-273,000
-59,000
70,000
-1,898,000
Gain Loss On Sale Of Business
-273,000
-59,000
70,000
-1,898,000
Net Income From Continuing Operations
4,820,000
4,167,000
2,893,000
3,522,000
4/7
Graham Score
Enterprising Investor
Requires deeper research. Suited for active investors.
Graham's Fair Value
$186.62
Margin of Safety
0%
Market Cap / Net Assets
3.4x
Net Assets: $36.2B
Warren's Owner Earnings
$5.8B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
4/7 — Enterprising Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$15.3B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
0.82x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
✅
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
0.94%
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $10.20 to $14.66 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+43.7% EPS growth
vs > 33% EPS growth
❌
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
25.3x
vs P/E ≤ 15.0x
❌
Moderate Price-to-Book
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
3.94x P/B (P/E×P/B: 99.8)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $15.3Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 0.82xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
✅ Dividend Record — 0.94%vs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $10.20 to $14.66 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
❌ Moderate P/E Ratio — 25.3xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what S&P Global Inc. is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
$-63.61
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$232.81
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
9.1%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
4.4%
3.2%
5.4%
2.7%
N/A
Repurchase of Capital Stock
-$5.0B
-$3.3B
-$3.3B
-$12.0B
N/A
Free Cash Flow
$5.5B▼
$5.6B▲
$3.6B▲
$2.5B•
N/A•
Warren's Owner Earnings
$5.8B
$5.1B
$3.9B
$4.3B
N/A
Peers & Industry
No auto-detected peers for Financial Data & Stock Exchanges. You can manually compare SPGI against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.27%
Low — management has little skin in the game
Return on Equity (ROE)
14.4%
Adequate — returns are moderate
Return on Assets (ROA)
7.3%
Strong — management uses assets efficiently
Share Buybacks (Latest Year)
$5.0B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+13.8% YoY
Debt is growing — management is leveraging up
Leadership Team
Martina Cheung
President, CEO & Director
Age 49
Pay: $3,850,628
0.086% of net income
Eric Walter Aboaf
CFO & Executive VP
Pay: $4,905,668
0.110% of net income
David Ernsberger
President of S&P Global Energy
Age 50
Yann Le Pallec
President of S&P Global Ratings
Catherine Clay
Chief Executive Officer of S&P Dow Jones Indices
Age 58
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
8.17%
24,071,452
Vanguard Capital Management LLC
6.58%
19,383,810
State Street Corporation
4.81%
14,175,534
TCI Fund Management Ltd
4.76%
14,035,310
Morgan Stanley
2.68%
7,908,180
Geode Capital Management, LLC
2.35%
6,917,960
Vanguard Portfolio Management LLC
2.29%
6,760,342
Wellington Management Group, LLP
2.06%
6,062,632
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
1.07
Moderate volatility — moves slightly more than market
Short Interest
1.7% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
0.43x
Conservative balance sheet — low financial risk
Current Ratio
0.95x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $361.03Current: $416.18High: $547.82
Currently at 30% of 52-week range
S&P Global Inc. (SPGI) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $186.62. Margin of safety: 0%. Gross profit margin: 70.2%. Operating margin: 40.3%. Net margin: 29.2%. Market cap: $122.7B. Sector: Financial Services. Industry: Financial Data & Stock Exchanges. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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