A Look At S&P Global (SPGI) Valuation After Dividend Hike And Planned Mobility Spin Off

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A Look At S&P Global (SPGI) Valuation After Dividend Hike And Planned Mobility Spin Off

Simply Wall St

Tue, January 20, 2026 at 10:11 AM EST

4 min read

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Dividend change and planned spin off come into focus

S&P Global (SPGI) recently approved a 1.0% increase in its regular quarterly dividend to $0.97 per share, with the move explicitly tied to the expected spin off of its Mobility division in 2026.

The new payout, which equates to an annualized dividend of $3.88 per share, is scheduled for March 11, 2026, to shareholders of record on February 25, 2026. This schedule gives investors clearer visibility on upcoming cash returns.

See our latest analysis for S&P Global.

Recent trading reflects that optimism, with a 30 day share price return of 6.58% and a 90 day share price return of 13.88% aligning with a 1 year total shareholder return of 7.91% and stronger multi year gains. This suggests that momentum has been building rather than fading.

If this kind of steady progress catches your eye, it could be a good moment to widen your watchlist with fast growing stocks with high insider ownership.

With SPGI at US$546.35 and recent returns already in the double digits over 90 days, the key question now is whether the current price still leaves room for upside or if the market is already pricing in future growth.

Price to earnings of 39.2x: Is it justified?

With S&P Global trading at US$546.35, the current 39.2x P/E points to a rich price tag compared to both its industry and peer averages.

The P/E ratio compares the share price with earnings per share, so a higher multiple often reflects higher expectations for earnings and profit quality in information heavy businesses like indices, ratings, and data providers.

Here, the company pairs high quality earnings with annual earnings growth of 18.8% over the past year and 8.6% over the past 5 years. However, the 39.2x P/E stands well above the Capital Markets industry at 25.9x and the estimated fair P/E of 18.5x, a level the market could eventually lean toward if expectations cool.

In addition, the current P/E is also higher than the 34.2x peer average, which signals that the market is paying a clear premium for S&P Global relative to similar names.

Explore the SWS fair ratio for S&P Global

Result: Price-to-earnings of 39.2x (OVERVALUED)

However, you still need to weigh risks such as a potential market reassessment of that premium P/E multiple, as well as execution challenges around the planned Mobility spin off.

Find out about the key risks to this S&P Global narrative.

Another view on valuation

Our DCF model points to an estimated fair value of about US$338.02 per share, compared with the current US$546.35 price. That flags S&P Global as expensive on this measure, even more so than the already high 39.2x P/E. Which yardstick do you trust more?

Story Continues

Look into how the SWS DCF model arrives at its fair value.

SPGI Discounted Cash Flow as at Jan 2026
SPGI Discounted Cash Flow as at Jan 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out S&P Global for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 876 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own S&P Global Narrative

If you look at these numbers and reach a different conclusion, or simply prefer to test your own assumptions, you can shape a full view in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding S&P Global.

Looking for more investment ideas?

If you stop with just one company, you could miss other opportunities that fit your style, so take a few minutes to scan the market more broadly.

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 SPGI.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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