S&P Global Inc. (SPGI): A Bull Case Theory

We came across a bullish thesis on S&P Global on FluentInQuality’s Substack. As of 14ᵗʰ July, S&P Global’s share was trading at $530.12. SPGI’s trailing and forward P/E were 41.68 and 31.54 respectively according to Yahoo Finance.

S&P Global is not a market-facing stock like others; it operates quietly as the essential infrastructure of modern finance. Through four synergistic businesses—S&P Ratings, S&P Indices, S&P Market Intelligence, and S&P Commodity Insights—it underpins how capital is allocated, priced, and monitored worldwide. Its influence is vast yet understated: over $100 trillion in assets track its indices, 95% of bond investors depend on its ratings, and countless ETFs pay licensing fees for its benchmarks.

These operations create a durable, fee-generating model that thrives in any market environment. Ratings function like a tollbooth—every government or corporate bond issuance requires S&P’s blessing, with the firm collecting fees on each. Indices act as an annuity—every passive fund tracking the S&P 500 pays royalties, delivering growing revenue with no incremental cost.

Its acquisition of IHS Markit has supercharged the data segment, offering AI-powered analytics, smarter terminals, and deeper insights, enabling clients to predict rather than simply report market movements. S&P’s business is built on intellectual property, not capital intensity—content, code, and credibility are its assets, resulting in 70%+ gross margins, high recurring revenue, low churn, and meaningful pricing power.

Few companies are as embedded in the global financial system; S&P is referenced by asset managers, governments, banks, traders, and journalists alike. Its role is not about cyclical performance but systemic relevance. As long as capitalism exists and capital continues to seek allocation, S&P Global will remain indispensable, quietly tracking, charging, and shaping the very flow of markets. This is not hype; it’s structural dominance.

Previously, we covered a bullish thesis on S&P Global Inc. by Quality Equities in May 2025, which highlighted the company’s dominant financial infrastructure, scalable model, and strategic focus post the mobility spin-off. The company’s stock price has appreciated by approximately 2.3% since our coverage. FluentInQuality shares a similar view but emphasizes S&P’s systemic role and durable, fee-based model.

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