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Morningstar PE Ratio

: 60.45 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-01-18), Morningstar's share price is $296.19. Morningstar's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $4.90. Therefore, Morningstar's PE Ratio for today is 60.45.


The historical rank and industry rank for Morningstar's PE Ratio or its related term are showing as below:

NAS:MORN' s PE Ratio Range Over the Past 10 Years
Min: 19.12   Med: 30.73   Max: 69.79
Current: 60.45

19.12
69.79

During the past 13 years, the highest PE Ratio of Morningstar was 69.79. The lowest was 19.12. And the median was 30.73.


NAS:MORN's PE Ratio is ranked lower than
88% of the 580 Companies
in the Capital Markets industry.

( Industry Median: 14.52 vs. NAS:MORN: 60.45 )

Morningstar's Earnings per Share (Diluted) for the three months ended in Sep. 2021 was $1.13. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 was $4.90.

As of today (2022-01-18), Morningstar's share price is $296.19. Morningstar's EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $4.90. Therefore, Morningstar's PE Ratio without NRI for today is 60.45.

During the past 13 years, Morningstar's highest PE Ratio without NRI was 69.79. The lowest was 19.12. And the median was 30.94.

Morningstar's EPS without NRI for the three months ended in Sep. 2021 was $1.13. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2021 was $4.90.

During the past 12 months, Morningstar's average EPS without NRI Growth Rate was 20.40% per year. During the past 3 years, the average EPS without NRI Growth Rate was -1.80% per year. During the past 5 years, the average EPS without NRI Growth Rate was 13.40% per year. During the past 10 years, the average EPS without NRI Growth Rate was 9.80% per year.

During the past 13 years, Morningstar's highest 3-Year average EPS without NRI Growth Rate was 93.90% per year. The lowest was -3.20% per year. And the median was 12.45% per year.

Morningstar's EPS (Basic) for the three months ended in Sep. 2021 was $1.14. Its EPS (Basic) for the trailing twelve months (TTM) ended in Sep. 2021 was $4.95.


Morningstar PE Ratio Historical Data

The historical data trend for Morningstar's PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Morningstar Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.80 19.77 30.49 25.84 42.99

Morningstar Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.46 44.79 38.21 46.49 52.86

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Morningstar's PE Ratio, along with its competitors' market caps and PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Morningstar PE Ratio Distribution

For the Capital Markets industry and Financial Services sector, Morningstar's PE Ratio distribution charts can be found below:

* The bar in red indicates where Morningstar's PE Ratio falls into.



Morningstar PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Morningstar's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=296.19/4.900
=60.45

Morningstar's Share Price of today is $296.19.
Morningstar's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $4.90.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Morningstar  (NAS:MORN) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Morningstar PE Ratio Related Terms

Thank you for viewing the detailed overview of Morningstar's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Morningstar Business Description

Morningstar logo
Industry
Financial Services » Capital Markets NAICS : 523210 SIC : 7323
Traded in Other Exchanges
Address
22 West Washington Street, Chicago, IL, USA, 60602
Morningstar is a provider of independent investment research to financial advisers, asset managers, and investors. The company focuses its operations on two core sectors: data and research. It offers data on investments such as mutual funds, stocks, exchange-traded funds, closed-end funds, separate accounts, and variable annuities. Further, the company tracks real-time market data of equity, derivative, and currency exchanges and other investments. In its research operation, Morningstar offers analyst research on passive and active mutual funds, alternative funds, and college saving plans. Morningstar's largest share of revenue is generated in the United States of America.
Executives
Mansueto Joseph D director, 10 percent owner, officer: Executive Chairman C/O MORNINGSTAR, INC. 225 WEST WACKER DRIVE CHICAGO IL 60606
Desmond Bevin officer: Head of Talent and Culture C/O MORNINGSTAR, INC. 225 WEST WACKER DRIVE CHICAGO IL 60606
Kapoor Kunal officer: CEO MORNINGSTAR, INC. 22 WEST WASHINGTON STREET CHICAGO IL 60602
Dunn Daniel Joseph officer: Chief Revenue Officer C/O MORNINGSTAR, INC. 22 WEST WASHINGTON STREET CHICAGO IL 60602
Francis Cheryl A director 8237 GREYSTONE COURT BURR RIDGE IL 60527
Dubinsky Jason officer: Chief Financial Officer C/O MORNINGSTAR, INC. 22 W. WASHINGTON STREET CHICAGO IL 60602
Diamonte Robin director C/O MORNINGSTAR, INC. 22 WEST WASHINGTON ST. CHICAGO IL 60602
Landis Gail S director MORNINGSTAR, INC. 22 WEST WASHINGTON STREET CHICAGO IL 60602
Kaplan Steven N director 1101 EAST 58TH STREET CHICAGO IL 60637
Noonan Jack director 17000 GULF BLVD UNIT B N. REDINGTON BEACH FL 33708
Joynt Stephen director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: JOYNT STEPHEN a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Mcgarry Kimberly J officer: Global Controller & CAO 22 WEST WASHINGTON STREET 6TH FLOOR CHICAGO IL 60602
Lyons William M director 225 WEST WACKER DRIVE CHICAGO IL 60606
Tsay Caroline J director C/O ROSETTA STONE INC. 1919 NORTH LYNN STREET, 7TH FLOOR ARLINGTON VA 22209
Kelly Haywood officer: Head of Global Fund Research MORNINGSTAR, INC. 22 WEST WASHINGTON STREET CHICAGO IL 60602

Morningstar Headlines

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