The Morningstar Fair Value Estimate

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.

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.

The Morningstar Fair Value Estimate is a measuring stick for determining long-term intrinsic value.

View video here: https://www.morningstar.com.au/Video/the-morningstar-fair-value-estimate/199913

Morningstar's various indexes are used by numerous ETF's. One of the best performing ASX ETF's is ETFs Morningstar Global Technology ETF up 100% since it started in April 2017 & currently paying 14.06% dividend. ASX ticker code TECH.