3 Reasons We’re Fans of S&P Global (SPGI)

October 08, 2025 at 00:01 AM EDT

SPGI Cover Image

While the S&P 500 is up 34.7% since April 2025, S&P Global (currently trading at $481.88 per share) has lagged behind, posting a return of 9.1%. This may have investors wondering how to approach the situation.

Taking into account the weaker price action, is now a good time to buy SPGI, or is it a pass? Find out in our full research report, it’s free for active Edge members.

Why Is SPGI a Good Business?

Tracing its roots back to 1860 when it published the first railroad industry manual, S&P Global (NYSE: SPGI) provides credit ratings, market intelligence, commodity data, automotive analytics, and financial indices that help investors and businesses make decisions.

1. Skyrocketing Revenue Shows Strong Momentum

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

Over the last five years, S&P Global grew its revenue at an impressive 15.5% compounded annual growth rate. Its growth surpassed the average financials company and shows its offerings resonate with customers.

2. EPS Surges Higher Over the Last Two Years

While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business.

S&P Global’s EPS grew at a remarkable 18.4% compounded annual growth rate over the last two years, higher than its 10.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

S&P Global Trailing 12-Month EPS (Non-GAAP)

3. Stellar ROE Showcases Lucrative Growth Opportunities

Return on equity, or ROE, quantifies bank profitability relative to shareholder equity - an essential capital source for these institutions. Over extended periods, superior ROE performance drives faster shareholder wealth compounding through reinvestment, share repurchases, and dividend growth.

Over the last five years, S&P Global has averaged an ROE of 28.6%, exceptional for a company operating in a sector where the average shakes out around 10% and those putting up 25%+ are greatly admired. This shows S&P Global has a strong competitive moat.

Final Judgment

These are just a few reasons why S&P Global ranks highly on our list. With its shares trailing the market in recent months, the stock trades at 26.4× forward P/E (or $481.88 per share). Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

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