S&P Global looks pricey right now

Article Excerpt

S&P GLOBAL INC. $512 is hold. The company (New York symbol SPGI; Finance sector; Shares outstanding: 306.7 million; Market cap: $157.0 billion; Dividend yield: 0.8%; Takeover Target Rating: Medium; www.spglobal.com) provides a wide variety of financial information products, including credit ratings, mainly to banks, insurance providers and other financial firms. It also operates the Standard & Poor’s 500 and other stock market indexes. S&P Global now plans to spin off its mobility business as a separate public company. This business provides specialized information to the automotive industry through three divisions—Used Vehicle Sales & Service (including the popular CARFAX reports), Strategy & Product Planning, and New Vehicle Sales & Marketing. In 2024, the mobility business’s total revenue rose 8% to $1.6 billion, or 11% of S&P Global’s total. You can now expect to see the mobility spinoff in mid-2026. Meantime, the parent company continues to benefit from licensing out its stock indexes to ETF and mutual fund operators. However, the stock trades at a somewhat high 30.3 times…