Morningstar (Comparative Multiple Analysis)
Improve your investment analysis with by seeing the Morningstar's Discounted Cash Flow analysis, Morningstar's Warren Buffet analysis, and Morningstar's Weighted Average Cost of Capital (WACC) Analysis.
Notes on the Comparative Multiple Analysis of Morningstar
WikiWealth compares Morningstar's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Morningstar's comparative analysis.
Notes from the analysis:
1. WikiWealth uses quantitative measures to determine the multiple range for Morningstar.
Helpful Information for Morningstar's Analysis
How does this work? The Comparative Investment Analysis determines the value of Morningstar by comparing Morningstar financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.
Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Morningstar.
Also, see the Morningstar's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Morningstar's valuation conclusion for a quick summary.