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Here's How Much You'd Have If You Invested $1000 in S&P Global a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in S&P Global (SPGI - Free Report) ten years ago? It may not have been easy to hold on to SPGI for all that time, but if you did, how much would your investment be worth today?
S&P Global's Business In-Depth
With that in mind, let's take a look at S&P Global's main business drivers. Incorporated in December 1925, S&P Global Inc. is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
The company operates through six reportable segments: S&P Global Market Intelligence (“Market Intelligence”), S&P Global Ratings (“Ratings"), S&P Global Commodity Insights (“Commodity Insights”), S&P Global Mobility (“Mobility”), S&P Dow Jones Indices (“Indices”) and S&P Global Engineering Solutions (“Engineering Solutions”).
Ratings (27% of total revenues in 2022): Ratings operates as an independent provider of credit ratings, research and analytics, providing investors and other market participants with information, ratings and benchmarks. With offices in more than 25 countries globally, Ratings holds an important position in the world's financial infrastructure. Ratings’ revenues are differentiated between transaction and non-transaction revenues.
Market Intelligence (34%): It helps investment professionals, government agencies, corporations and universities to track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform evaluations and assess credit risk. Desktop, Data Management Solutions and Risk Services are the business lines included in the segment.
Commodity Insights (15%): Commodity Insights provides information and benchmark prices for commodity and energy markets. It helps producers, traders, energy and commodity market intermediaries with price data, analytics and industry insights, thereby enhancing transparency and efficiency in the market.
Indices (12%): Indices is a global index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors. Indices mainly derives revenues from asset-linked fees based on the S&P and Dow Jones indices and also from subscription and transaction revenues.
Mobility (10%) & Engineering Solutions (3%) which were acquired as a result of the IHS Markit buyout, serves two different sections of customers. Mobility serves vehicle manufacturers, automotive suppliers, mobility service providers, retailers, consumers, and finance and insurance companies while Engineering Solutions serves technical professionals
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in S&P Global ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2013 would be worth $7,221.09, or a 622.11% gain, as of June 19, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 171.07% and gold's return of 39.08% over the same time frame.
Analysts are forecasting more upside for SPGI too.
S&P Global remains well poised to gain from growing demand for business information services. Buyouts help innovate, increase differentiated content and develop new products. Effective management execution has helped it generate solid cash flow which is utilized for growth initiatives. Dividend payments and share buybacks boost investors confidence and positively impact earnings per share. Partly due to these positives, the stock has gained in the past year. However, S&P Global remains vulnerable to proceedings, investigations and inquiries with respect to the ratings provided, leading to legal charges, damages or fines. Growth initiatives, higher compensations and incentives raise the company's expenses. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Over the past four weeks, shares have rallied 8.15%, and there have been 9 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in S&P Global a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in S&P Global (SPGI - Free Report) ten years ago? It may not have been easy to hold on to SPGI for all that time, but if you did, how much would your investment be worth today?
S&P Global's Business In-Depth
With that in mind, let's take a look at S&P Global's main business drivers. Incorporated in December 1925, S&P Global Inc. is a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
The company operates through six reportable segments: S&P Global Market Intelligence (“Market Intelligence”), S&P Global Ratings (“Ratings"), S&P Global Commodity Insights (“Commodity Insights”), S&P Global Mobility (“Mobility”), S&P Dow Jones Indices (“Indices”) and S&P Global Engineering Solutions (“Engineering Solutions”).
Ratings (27% of total revenues in 2022): Ratings operates as an independent provider of credit ratings, research and analytics, providing investors and other market participants with information, ratings and benchmarks. With offices in more than 25 countries globally, Ratings holds an important position in the world's financial infrastructure. Ratings’ revenues are differentiated between transaction and non-transaction revenues.
Market Intelligence (34%): It helps investment professionals, government agencies, corporations and universities to track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform evaluations and assess credit risk. Desktop, Data Management Solutions and Risk Services are the business lines included in the segment.
Commodity Insights (15%): Commodity Insights provides information and benchmark prices for commodity and energy markets. It helps producers, traders, energy and commodity market intermediaries with price data, analytics and industry insights, thereby enhancing transparency and efficiency in the market.
Indices (12%): Indices is a global index provider that maintains a wide variety of valuation and index benchmarks for investment advisors, wealth managers and institutional investors. Indices mainly derives revenues from asset-linked fees based on the S&P and Dow Jones indices and also from subscription and transaction revenues.
Mobility (10%) & Engineering Solutions (3%) which were acquired as a result of the IHS Markit buyout, serves two different sections of customers. Mobility serves vehicle manufacturers, automotive suppliers, mobility service providers, retailers, consumers, and finance and insurance companies while Engineering Solutions serves technical professionals
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in S&P Global ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2013 would be worth $7,221.09, or a 622.11% gain, as of June 19, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 171.07% and gold's return of 39.08% over the same time frame.
Analysts are forecasting more upside for SPGI too.
S&P Global remains well poised to gain from growing demand for business information services. Buyouts help innovate, increase differentiated content and develop new products. Effective management execution has helped it generate solid cash flow which is utilized for growth initiatives. Dividend payments and share buybacks boost investors confidence and positively impact earnings per share. Partly due to these positives, the stock has gained in the past year. However, S&P Global remains vulnerable to proceedings, investigations and inquiries with respect to the ratings provided, leading to legal charges, damages or fines. Growth initiatives, higher compensations and incentives raise the company's expenses. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.
Over the past four weeks, shares have rallied 8.15%, and there have been 9 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.