Morningstar provides independent investment research services, including data on stocks, mutual funds, and similar vehicles, and real-time global market data covering equities, indexes, futures, options, commodities, and precious metals. The company was founded in 1984 and is based in Chicago, Illinois.
MORN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Morningstar Inc. To summarize, we found that Morningstar Inc ranked in the 31th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 29%. In terms of the factors that were most noteworthy in this DCF analysis for MORN, they are:
The business' balance sheet suggests that 12% of the company's capital is sourced from debt; this is greater than merely 23.89% of the free cash flow producing stocks we're observing.
Morningstar Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -21.71. This coverage rate is greater than that of merely 3.54% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 87.59% of stocks in its sector (Financial Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WETF, ASPS, MSCI, WLTW, and EIG can be thought of as valuation peers to MORN, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.