We recently unveiled our equity research initiative during the inaugural Morningstar Investment Conference, held on November 2, 2011. Morningstar has been successfully providing the Indian investor with a range of mutual fund focused research and analysis. Now, we are taking the next step, expanding the range and scope of our offerings into the Indian market with new, groundbreaking equity research reports. We plan to initiate coverage on a range of large-cap, mid-cap, and small-cap companies, across various sectors, and listed on the Indian bourses.
Morningstar analysts use a consistent, proprietary methodology. This methodology is grounded in the conceptual cornerstones of fundamental analysis, competitive advantage assessment, and intrinsic value estimation. We 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. Our in-depth analysis of companies’ competitive advantages culminates in each stock receiving an economic moat rating of either wide, narrow, or none.
We believe that a company’s intrinsic worth stems from its future cash flows. The Morningstar Rating for stocks identifies stocks trading at a discount or premium to their intrinsic worth, or fair value estimate, in Morningstar terminology. Underlying this rating is a fundamentally focused methodology, and a robust, standardized set of procedures that serve as core valuation tools for Morningstar’s equity analysts.
Morningstar looks for superior businesses that trade at discounts to their fair value estimates. The market, of course, doesn't always agree with us. At times, our recommendations can be out of step with consensus thinking. However, we believe this approach remains the most sensible way to create wealth over the long term. For our equity research methodology, please click here
With over 100 equity and credit analysts globally, Morningstar is one of the world’s largest independent sources for data and stock analysis. Our insightful research is distributed through multiple channels to help investors, research analysts, and asset managers make sound and informed financial and investment decisions.