M UpdateBrokers, Asset Managers & Exchanges | North AmericaWeekly Comp Sheet and Consensus EPS Revision Tracker Our weekly comp sheet provides detailed metrics across covered and non-covered companies within our four major sub-sectors, as well as consensus EPS revisions and historical stock performance. Morgan Stanley & Co. LLCMichael J. Cyprys, CFA, CPAEquity Analyst Michael.Cyprys@morganstanley.com +1 212 761-7619 Stephanie MaResearch Associate Stephanie.Ma@morganstanley.com +1 212 296-3552 Chuma L Nwankwo, CFAResearch Associate Chuma.Nwankwo@morganstanley.com +1 212 761-4784 Annalei E DavisResearch Associate Annalei.Davis@morganstanley.com +1 212 761-1736 Brokers, Asset Managers & ExchangesNorth AmericaIndustry ViewIn-LineMorgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision.For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report.Key TakeawaysComparable trading multiples, including: P/E, EV/EBITDA, Mkt Cap to AuM, Div. Yield for trad & alt asset managers, brokers, and market infrastructure/exchangesAlternative Asset Manager SOTP market implied carry multiples - see Alts Annex Comp Sheet (pg. 5)Investor sentiment and positioning, including short interestSub-sector historical stock performance metrics and consensus EPS revision history, including: 1 week, 1 month, 3 month, YTD, LTMTraditional and Alternative Asset Manager AuM mix; Alts earnings mix; Brokers and Exchanges revenue mixDecember 27, 2023 05:01 AM GMTM Update2Comp Sheet Summary Exhibit 1:Covered and Non-Covered Comp Sheet Summary26/Dec/23 EPS CAGR (%)Price/ Earnings (P/E) EV/ EBITDA Mkt Cap Div Yield (%)Sub-SectorMarket Cap ($B)EV ($B)23-'252023E2024E2025E2023E2024E2025E% AuM2023E2024E2025ETraditional Asset Managers200.1210.110.812.4x11.2x9.7x7.9x7.8x7.4x1.34.02.02.3Alternative Asset Managers390.5422.022.124.8x20.0x16.1x21.8x15.5x12.3x5.63.60.71.0Brokers231.1261.77.914.0x13.4x12.3x10.1x10.5x9.9x2.31.00.50.5Market Structure/Exchanges277.3303.27.622.6x21.8x20.2x16.1x15.5x14.6xn/a1.50.91.0Mean (Mkt Cap and EV = Total)$1,099.0$1,196.912.118.4x16.6x14.6x14.0x12.3x11.1x2.51.01.2Median9.318.3x16.7x14.2x13.1x13.0x11.1x2.50.81.0Note: Sub-sector summaries are on a Median basis across all metrics in above table. Source: Company Data, FactSet and Morgan Stanley Research Estimates Exhibit 2:Covered and Non-Covered Comp Sheet Summary (Cont'd)26/Dec/23Sell-side ratings (%)Avg Daily Vol Shares Traded (M)Avg Dollar Value Traded (M)% of Mrkt Cap TradedShort Int. %Sub-SectorBuyHoldSell30-Day90-Day30-Day90-Day90-Dayof O/STraditional Asset Managers3846161.321.1583.475.40.73.6Alternative Asset Managers574122.141.79132.0114.70.43.9Brokers623355.0...
