Morningstar Valuation
| MORN Stock | USD 303.01 5.05 1.69% |
At this time, the firm appears to be overvalued. Morningstar secures a last-minute Real Value of $228.63 per share. The latest price of the firm is $303.01. Our model forecasts the value of Morningstar from analyzing the firm fundamentals such as Current Valuation of 13.5 B, profit margin of 0.07 %, and Return On Equity of 0.11 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend obtaining undervalued stocks and abandoning overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Morningstar's valuation include:
Price Book 9.8554 | Enterprise Value 13.5 B | Enterprise Value Ebitda 32.4449 | Price Sales 6.413 | Trailing PE 90.8415 |
Overvalued
Today
Please note that Morningstar's price fluctuation is very steady at this time. Calculation of the real value of Morningstar is based on 3 months time horizon. Increasing Morningstar's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Morningstar is useful when determining the fair value of the Morningstar stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Morningstar. Since Morningstar is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Morningstar Stock. However, Morningstar's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 303.01 | Real 228.63 | Target 230.0 | Hype 302.82 |
The real value of Morningstar Stock, also known as its intrinsic value, is the underlying worth of Morningstar Company, which is reflected in its stock price. It is based on Morningstar's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Morningstar's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Morningstar's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Morningstar helps investors to forecast how Morningstar stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Morningstar more accurately as focusing exclusively on Morningstar's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Morningstar's intrinsic value based on its ongoing forecasts of Morningstar's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Morningstar's closest peers. When choosing an evaluation method for Morningstar, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Morningstar Investments |
|
Morningstar Valuation Trend
Knowing Morningstar's actual value is paramount for traders to make sound investment determinations. Morningstar's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Morningstar's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Morningstar's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Morningstar Market Cap
Morningstar is rated below average in market capitalization category among related companies. Market capitalization of Financials industry is now estimated at about 456.9 Billion. Morningstar holds roughly 12.74 Billion in market capitalization claiming about 2.79% of equities under Financials industry.Morningstar Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Morningstar's current stock value. Our valuation model uses many indicators to compare Morningstar value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Morningstar competition to find correlations between indicators driving Morningstar's intrinsic value. More Info.Morningstar is regarded third in price to earning category among related companies. It is regarded second in price to book category among related companies fabricating about 0.24 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Morningstar is roughly 4.24 . As of the 23rd of April 2024, Price To Book Ratio is likely to drop to 9.01. Comparative valuation analysis is a catch-all model that can be used if you cannot value Morningstar by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Morningstar's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Morningstar's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Morningstar's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Morningstar and how it compares across the competition.
About Morningstar Valuation
The stock valuation mechanism determines the current worth of Morningstar on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Morningstar. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Morningstar based exclusively on its fundamental and basic technical indicators. By analyzing Morningstar's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Morningstar's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Morningstar. We calculate exposure to Morningstar's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Morningstar's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1 B | 1.1 B | |
| Pretax Profit Margin | 0.08 | 0.11 | |
| Operating Profit Margin | 0.14 | 0.1 | |
| Net Profit Margin | 0.07 | 0.08 | |
| Gross Profit Margin | 0.50 | 0.72 |
8 Steps to conduct Morningstar's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Morningstar's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Morningstar's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Morningstar's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Morningstar's revenue streams: Identify Morningstar's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Morningstar's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Morningstar's growth potential: Evaluate Morningstar's management, business model, and growth potential.
- Determine Morningstar's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Morningstar's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Morningstar represents a small ownership stake in the entity. As a stockholder of Morningstar, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Morningstar Dividends Analysis For Valuation
As of the 23rd of April 2024, Dividend Yield is likely to grow to 0.01, while Dividends Paid is likely to drop about 40.5 M. . At this time, Morningstar's Retained Earnings are very stable compared to the past year. As of the 23rd of April 2024, Earnings Yield is likely to grow to 0.02, while Retained Earnings Total Equity is likely to drop about 999.2 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 63.9 M | 40.5 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.45 | 0.25 | |
| Dividend Paid And Capex Coverage Ratio | (5.73) | (6.02) |
There are various types of dividends Morningstar can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Morningstar shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Morningstar directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Morningstar pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Morningstar by the value of the dividends paid out.
Morningstar Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Morningstar does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 42.9 M | |
| Quarterly Earnings Growth Y O Y | 21.285 |
Morningstar Current Valuation Indicators
Valuation refers to the process of determining the present value of Morningstar and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Morningstar we look at many different elements of the entity such as Morningstar's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Morningstar's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Morningstar's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Morningstar, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Morningstar's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Morningstar's worth.When determining whether Morningstar offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Morningstar's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Morningstar Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Morningstar Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Morningstar. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Morningstar Stock, please use our How to Invest in Morningstar guide.You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Complementary Tools for Morningstar Stock analysis
When running Morningstar's price analysis, check to measure Morningstar's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Morningstar is operating at the current time. Most of Morningstar's value examination focuses on studying past and present price action to predict the probability of Morningstar's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Morningstar's price. Additionally, you may evaluate how the addition of Morningstar to your portfolios can decrease your overall portfolio volatility.
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |
Is Morningstar's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Morningstar. If investors know Morningstar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Morningstar listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 21.285 | Dividend Share 1.53 | Earnings Share 3.28 | Revenue Per Share 47.854 | Quarterly Revenue Growth 0.134 |
The market value of Morningstar is measured differently than its book value, which is the value of Morningstar that is recorded on the company's balance sheet. Investors also form their own opinion of Morningstar's value that differs from its market value or its book value, called intrinsic value, which is Morningstar's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Morningstar's market value can be influenced by many factors that don't directly affect Morningstar's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Morningstar's value and its price as these two are different measures arrived at by different means. Investors typically determine if Morningstar is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Morningstar's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.