TROW - Morgan Stanley's Acquisition Of Eaton Vance Illustrates The Value In Ameriprise Financial
- Morgan Stanley just agreed to purchase Eaton Vance (EV) for $7BB.
- Buying EV at a 17.5x forward 12 month earnings multiple, 13.5x with synergies, highlights the value of other brokers and money managers.
- Ameriprise, a terrific Compounder with better metrics than EV, still trades at only 9.5x forward earnings, with EPS expected to grow roughly 15% in 2021 and 2022.
- Importantly, Ameriprise has reduced its equity and rate exposure dramatically since this time a year ago.
- That means less earnings volatility, and less downside in the event of another bear market.
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Morgan Stanley's Acquisition Of Eaton Vance Illustrates The Value In Ameriprise Financial