(MSCI) MSCI - Ratings and Ratios

MSCI Inc. (NYSE:MSCI) is a New-York-based provider of data, analytics, and decision-support tools that serve the global investment community across public and private markets. The company operates under a diversified model that splits revenue among four primary segments: Index, Analytics, ESG & Climate, and Private Assets/Capital Solutions.

Index segment – This business licenses more than 14,000 indexes, including the widely used MSCI World and MSCI Emerging Markets families, which together cover roughly 85 % of the investable global equity market. Index licensing accounts for about 45 % of MSCI’s total revenue, and growth is strongly tied to the rapid expansion of ETF assets, which have surged to >$9 trillion worldwide in 2023. The segment also monetizes the Global Industry Classification Standard (GICS) and GICS Direct, which are adopted by the majority of institutional managers for sector-level analysis.

Analytics segment – MSCI delivers risk-management, performance-attribution, and portfolio-construction tools, plus the HedgePlatform for hedge-fund risk monitoring. In 2023 the segment served roughly $30 trillion of assets under analysis (AUA), generating roughly 35 % of total revenue. Key drivers include heightened demand for multi-asset risk analytics amid volatile interest-rate environments and increasing regulatory scrutiny of model risk.

ESG & Climate segment – This unit provides ESG ratings, climate-risk data, and compliance solutions that help investors meet emerging regulations such as the EU Sustainable Finance Disclosure Regulation (SFDR) and the U.S. SEC’s climate-related disclosure rules. ESG revenues have been growing at an estimated 30 % CAGR since 2020, reflecting a sector-wide shift toward sustainable investing and the fact that MSCI now rates over 14,000 public companies on ESG metrics.

Private Assets & Private Capital Solutions – MSCI’s private-assets offering supplies real-estate and infrastructure benchmarks, return-analytics, and climate assessments, while the Private Capital Solutions suite automates sourcing, due-diligence, and performance-monitoring workflows for private-equity and infrastructure funds. The combined segment is positioned to capture a market that Bloomberg estimates will exceed $5 trillion in assets under management by 2027, driven by institutional appetite for alternative-asset exposure.

For a deeper, data-driven view of MSCI’s valuation dynamics and how its segment mix may affect future earnings, consider exploring the MSCI analysis page on ValueRay.