Investment Insights Stocks

Find out how Morningstar uses fundamental analysis to estimate a company’s intrinsic value.
Eric Dziewiontkoski 9-minute read

What’s covered in an analyst report?

Can you explain the different sections in the analyst report?

Business Strategy and Outlook

Bulls Say and Bears Say

Economic Moat

Fair Value and Profit Drivers

Risk and Uncertainty

Capital Allocation

Analyst Note

Analyst Note Archive


How often are reports published?

How can investors better understand Morningstar’s equity ratings?

Economic Moat

Fair Value Estimate

Uncertainty Rating

Market Price

5 stars.

5 stars

4 stars.

4 stars
Morningstar believes appreciation beyond a fair risk-adjusted return is likely.

3 stars.

3 stars
Morningstar believes that investors are likely to receive a fair risk-adjusted return, approximately the cost of equity.

2 stars.

2 stars 
Morningstar believes investors are likely to receive a less than fair risk-adjusted return and should consider directing capital elsewhere.

1 star.

1 star
Indicates a high probability of undesirable risk-adjusted returns from the current market price over a multi-year time frame, based on our analysis. Scenario analysis by our analysts indicates that the market is pricing in an excessively optimistic outlook, limiting upside potential and leaving the investor exposed to capital loss.

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Created by
Eric Dziewiontkoski
Director of Research Distribution Products at Morningstar Research Services, LLC

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