MS

Morgan Stanley

Finance/Real Estate


Presented:07/18/2016
Price:$28.19
Cap:$53.98B
Current Price:$112.22
Cap:$181.56B

Presented

Date07/18/2016
Price$28.19
Market Cap$53.98B
Ent Value$233.64B
P/E Ratio12.42x
Book Value$35.34
Div Yield0%
Shares O/S1,914.84M
Ave Daily Vol14,790,556
Short Int0.77%

Current

Price$112.22
Market Cap$181.56B
Morgan Stanley is a global financial services firm which, through its subsidiaries and affiliates, provides investment banking products and services to its clients and customers including corporations, governments, financial institutions, and individuals. It operates through the following segments: Institutional Securities, Wealth Management, and Investment Management. The Institutional Services segment provides financial advisory, capital-raising services, and related financing services on behalf of institutional investors. The Wealth Management segment offers brokerage and investment advisory services covering various types of investments, including equities, options, futures, foreign currencies, precious metals, fixed-income securities, mutual funds, structured products, alternative investments, unit investment trusts, managed futures, separately managed accounts, and mutual fund asset allocation programs. The Investment Management segment provides equity, fixed income, alternative investments, real estate, and merchant banking strategies. The company was founded by Harold Stanley and Henry S. Morgan on September 16, 1935 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: The Goldman Sachs Group Inc (GS), Morgan Stanley (MS)

Highlights

Morgan Stanley (MS) represents “a compelling value case” with optionality around incremental change at a time when the financial sector seems like it is the cheapest sector in the market. The presenter recently established a long position in MS and sees ~$28 (0.8x Book Value / 0.9x Tangible Book Value) as an attractive entry point for investors willing to hold the position for 12 - 18 months. If his thesis plays out as expected, 0.8x tangible book should act as a floor and as ROE improves the multiple could expand to 1.2x - 1.3x.

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Idea Discussion

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