The Morningstar Star Rating for Stocks is assigned based on an analyst’s price quote of a stocks reasonable worth. It is projection/opinion and not a statement of reality. Morningstar appoints star ratings based on an expert’s estimate of a stock’s reasonable value. Four components drive the Star Rating: (1) our evaluation of the company’s financial moat, (2) our price quote of the stock’s fair worth, (3) our uncertainty around that fair worth price quote and (4) the present market price. This procedure culminates in a single-point star rating that is updated daily. A 5-star represents a belief that the stock is a great value at its present price; a 1-star stock isn’t. Generally within three years if our base-case assumptions are real the market rate will assemble on our reasonable value estimate over time. Investments in securities go through market and other threats. Previous efficiency of a security may or may not be sustained in future and is no sign of future performance. For detail information about the Morningstar Star Rating for Stocks, please go to here
Quantitative Fair Value Estimate represents Morningstar’s quote of the per share dollar amount that a company’s equity deserves today. The Quantitative Fair Value Estimate is based on a statistical design originated from the Fair Value Estimate Morningstar’s equity experts appoint to business which includes a monetary projection of the business. The Quantitative Fair Value Estimate is computed daily. It is a projection/opinion and not a statement of fact. Investments in securities go through market and other dangers. Previous efficiency of a security may or may not be sustained in future and is no indication of future efficiency. For detail information about the Quantiative Fair Value Estimate, please see here
