The Morningstar Star Rating for Stocks is assigned based on an expert’s estimate of a stocks fair value. It is projection/opinion and not a statement of fact. Morningstar appoints star ratings based upon an expert’s price quote of a stock’s fair worth. Four parts drive the Star Rating: (1) our evaluation of the firm’s economic moat, (2) our quote of the stock’s reasonable value, (3) our unpredictability around that fair value estimate and (4) the present market value. This process culminates in a single-point star ranking that is upgraded daily. A 5-star represents a belief that the stock is an excellent worth at its present rate; a 1-star stock isn’t. Typically within 3 years if our base-case assumptions are true the market price will assemble on our reasonable worth estimate over time. Investments in securities go through market and other dangers. Past efficiency of a security may or may not be sustained in future and is no sign of future efficiency. For detail info about the Morningstar Star Rating for Stocks, please visit here
Quantitative Fair Value Estimate represents Morningstar’s estimate of the per share dollar amount that a business’s equity is worth today. The Quantitative Fair Value Estimate is based upon an analytical model stemmed from the Fair Value Estimate Morningstar’s equity analysts designate to companies which includes a monetary projection of the company. The Quantitative Fair Value Estimate is calculated daily. It is a projection/opinion and not a statement of truth. Investments in securities undergo market and other risks. Past performance of a security might or might not be sustained in future and is no indication of future efficiency. For detail info about the Quantiative Fair Value Estimate, please go to here
