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Morningstar GF Value Rank

: 7 (As of Today)
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Morningstar has the GF Value Rank of 7.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Morningstar's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

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

* The bar in red indicates where Morningstar's GF Value Rank falls into.



Morningstar GF Value Rank Related Terms

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


Morningstar Business Description

Morningstar logo
Traded in Other Exchanges
Address
22 West Washington Street, Chicago, IL, USA, 60602
Morningstar Inc 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
Francis Cheryl A director 8237 GREYSTONE COURT BURR RIDGE IL 60527
Sutton Doniel director C/O MORNINGSTAR, INC. 22 WEST 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
Joynt Stephen director C/O MORNINGSTAR, INC. 22 W. WASHINGTON STREET CHICAGO IL 60602
Lyons William M director 225 WEST WACKER DRIVE CHICAGO IL 60606
Mcgarry Kimberly J officer: Global Controller & CAO 22 WEST WASHINGTON STREET 6TH FLOOR CHICAGO IL 60602
Tsay Caroline J director C/O ROSETTA STONE INC. 1919 NORTH LYNN STREET, 7TH FLOOR ARLINGTON VA 22209
Desmond Bevin officer: Head of Talent and Culture C/O MORNINGSTAR, INC. 225 WEST WACKER DRIVE CHICAGO IL 60606
Kapoor Kunal director, 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
Dubinsky Jason officer: Chief Financial Officer C/O MORNINGSTAR, INC. 22 W. WASHINGTON STREET CHICAGO IL 60602
Mansueto Joseph D director, 10 percent owner, officer: Executive Chairman C/O MORNINGSTAR, INC. 225 WEST WACKER DRIVE CHICAGO IL 60606
Rothschild Tricia officer: Chief Product Officer C/O MORNINGSTAR, INC. 22 WEST WASHINGTON STREET CHICAGO IL 60602

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