The Intrinsic Value Podcast - The Investor’s Podcast Network TIVP048: S&P Global (SPGI): The Company behind the Market w/ Daniel Mahncke & Shawn O’Malley
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Nov 30, 2025 Dive into S&P Global, the powerhouse behind the S&P 500, and explore its diverse range of businesses from ratings to market intelligence. The hosts discuss the company's rich history, including the impactful IHS Markit acquisition, and analyze the deep moat created by its ratings business. Discover insights into subscription models, AI disruption risks, and the economic landscape of index licensing. They also evaluate S&P's capital allocation strategy, high margins, and financial performance while deliberating on its investment potential.
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S&P Is A Diversified, High‑Margin Data Empire
- S&P Global is far more than the S&P 500 index and consists of multiple high-margin data businesses.
- The ratings business is the largest profit driver and enjoys regulatory entrenchment and durable demand.
First Job Lessons From Capital IQ Support
- Shawn O'Malley recalls his first job at S&P where Capital IQ supported a vast range of clients from central banks to retail users.
- He describes troubleshooting models and helping users find obscure data across many industries.
Ratings: A Regulation‑Backed Moat
- Ratings benefit from regulatory recognition (NRSRO) and decades of trust, creating very high barriers to entry.
- Even if a competitor undercuts price, borrowers save millions in interest by using top agencies, solidifying the moat.
