Morningstar's fair value estimate for exchange-traded funds leverages the bottom-up fundamental analysis produced by our global team of equity research analysts, distilling their extensive work into one powerful metric of the estimated intrinsic value of a portfolio of stocks. We’ve recently enhanced this measure, incorporating our Quantitative Equity Ratings--specifically, our quantitative fair value estimates. This has significantly expanded the number of equity ETFs for which we can calculate a fair value estimate, allowing us to more readily assess valuations across a wider spectrum of global stock markets.
Morningstar’s Approach to Rating Stocks
Our equity analysts evaluate stocks for what they truly are: pieces of a business. Instead of prognosticating short-term price movements or momentum, our analysts focus on determining the value of a business, its risks, and whether the stock price accurately reflects both the value and risk. This philosophy of fundamental research is the foundation for our valuation model. We believe that:
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Ben Johnson does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.