
Morgan Stanley currently trades at $187.26 per share and has shown little upside over the past six months, posting a small loss of 1.6%. The stock also fell short of the S&P 500’s 7.5% gain during that period.
Is now the time to buy MS? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free.
Why does Morgan Stanley spark debate?
Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley (NYSE: MS) is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.
Two things to like:
1. Skyrocketing revenue shows strong momentum
Long-term growth is the most important, but within financials, a stretched historical view may miss recent interest rate changes and market returns. Morgan Stanley’s annualized revenue growth of 17.1% over the last two years is above its five-year trend, suggesting its demand recently accelerated.
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
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.
Morgan Stanley’s EPS grew at an astounding 36% compounded annual growth rate over the last two years, higher than its 17.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

One reason to be careful:
Steady increase in TBVPS highlights solid asset growth
Tangible book value per share (TBVPS) is a crucial metric that measures the actual value of shareholders’ equity, stripping out goodwill and other intangible assets that may not be recoverable in a worst-case scenario.
Although Morgan Stanley’s TBVPS increased by a meager 5.6% annually over the last five years, the good news is that its growth has recently accelerated as TBVPS grew at a solid 10.2% annual clip over the past two years (from $43.76 to $53.18 per share).

Final judgment
Morgan Stanley has huge potential even though it has some open questions. With its shares underperforming the market lately, the stock trades at 13.7× forward P/E (or $187.26 per share). Is now the right time to buy? See for yourself in our full research report, it’s free.
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