The Morningstar Fair Value Estimate

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<p>The Morningstar Fair Value Estimate tells investors what the long-term intrinsic value of a stock is, helping them see beyond the present market price.</p> <p>Morningstar calculates the fair value estimate of a company based on how much cash we think the company will generate in the future. When determining the fair value estimate, Morningstar also takes into account the predictability of a company's future cash flows--the uncertainty rating. A stock with a higher uncertainty rating requires a larger margin of safety before earning a 4- or 5-star rating.</p> <p>The Morningstar Fair Value Estimate is a measuring stick for determining long-term intrinsic value.</p>

Video Archive...

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