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 30th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Morningstar Inc ended up being:
The company's balance sheet shows it gets 90% of its capital from equity, and 10% of its capital from debt. Notably, its equity weight is greater than 79.73% of US equities in the Financial Services sector yielding a positive free cash flow.
The business' balance sheet suggests that 10% of the company's capital is sourced from debt; this is greater than just 21.5% 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 -32.69. This coverage rate is greater than that of merely 3.69% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Morningstar Inc? See AON, ARGO, SAFT, MA, and RAND.
CLEVELAND, June 2, 2020 /PRNewswire/ -- RIA in a Box, a leading provider of compliance, cybersecurity, and registration software and services solutions for the wealth management industry, today announced it has joined forces with industry leaders Morningstar, Redtail Technology (Redtail),…
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