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The Short Answer

Why Do Stocks' Fair Value Estimates Change?

We explain some of the main reasons Morningstar equity analysts may adjust their assessment of a stock's intrinsic value.

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Question: Why and when does Morningstar change fair value estimates for stocks? 

Answer: There are many reasons Morningstar equity analysts might make a change to our fair value estimates. Many times the change is not a large, wholesale change; it's often the result a small tweak to our model based or a time value of money update, or an increase or decrease in the underlying inputs in our model based on new information revealed in quarterly earnings reports. 

Karen Wallace does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.