This podcast episode analyzes S&P Global, the company behind the S&P 500 index, exploring its diverse business units including credit ratings, market intelligence (Capital IQ Pro), commodity insights, and index services. The hosts discuss S&P Global's history, its recent acquisition of IHS Market, and the competitive landscape. They delve into the profitability and resilience of the credit rating business, highlighting its oligopolistic nature and the importance of credit ratings in global debt markets. The episode concludes with a valuation discussion, noting S&P Global's high current valuation and suggesting potential entry points for investors. For example, the hosts mention that S&P Global's return on capital employed averages 28% annually.
