Morgan Stanley (MS) is back in the spotlight after fresh analyst upgrades and upbeat earnings estimates pushed investors to revisit the stock, with heavier options trading underscoring growing interest in its next move.
See our latest analysis for Morgan Stanley.
Those upbeat revisions are landing on a stock that has already been gathering steam, with a 1 month share price return of about 8% and a powerful 1 year total shareholder return near 45%, suggesting momentum is firmly building rather than fading.
If Morgan Stanley’s run has you rethinking what could outperform next, it might be worth scanning fast growing stocks with high insider ownership to spot other fast growing names quietly gaining conviction from insiders.
Yet with the share price now above many analyst targets and long term returns already exceptional, the key question is whether Morgan Stanley is still trading below its true value or if the market is fully pricing in future growth.
With Morgan Stanley last closing at $180.29 against a narrative fair value near $169.52, the story leans toward a stretched price built on rising expectations.
The ongoing increase in global wealth, combined with the accelerating intergenerational transfer of assets, is boosting demand for comprehensive advisory and wealth management solutions, as evidenced by record net new assets and a growing client base, which should drive higher recurring fee-based revenue and long-term earnings growth.
Curious how steady revenue growth, thicker margins and a disciplined earnings multiple all combine to justify this valuation tension. Want to unpack the full blueprint behind that fair value call.
Result: Fair Value of $169.52 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, a faster shift to low fee passive products or tougher global regulation could compress margins and undermine the long term wealth management growth story.
Find out about the key risks to this Morgan Stanley narrative.
While the narrative fair value points to a 6.4% overvaluation, the picture looks less stretched when you look at the price to earnings ratio. At 18.4 times, Morgan Stanley trades below the US market at 19.1 times, its industry at 25.9 times, and even its own 19.1 times fair ratio.
That gap hints the market may already be baking in some of the slower growth and regulatory risk. This raises the question: is today’s premium narrative more about fear of missing out than true overpricing?
See what the numbers say about this price — find out in our valuation breakdown.
If this perspective does not quite line up with your own, you can dive into the numbers, craft a fresh view and Do it your way in under three minutes.
A great starting point for your Morgan Stanley research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MS.
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