Skip to Content
Our Picks

So Where Are the Equity Values?

Bargains are hard to find in a market hovering just above fairly valued levels, but new data may provide some clues.


As anyone who follows the markets knows, stock bargains are hard to come by these days. The market's recent record highs might make investors feel good about their equity holdings. However, for those looking to trade into new opportunities, or for those who have had cash languishing on the sidelines for months or even years, these are challenging times indeed.

Estimates for the market's overall fair value suggest it is trading at a slight premium. A look at this site's Market Fair Value page, which includes data derived from our equity analysts' fair value estimates for the stocks they cover, suggests stocks were trading at 1.03 times their fair value, meaning they are 3% overvalued, as of the end of trading July 21. However, Morningstar recently developed an even broader valuation measure for stocks that assigns fair value estimates and other metrics to virtually all stocks, not just those covered by our analyst team. The Quantitative Morningstar Rating for stocks is calculated using an algorithm designed to predict the Morningstar Rating for stocks that one of our analysts would assign to a stock. These so-called quant ratings have been available to Morningstar's institutional customers since 2013, and there are plans to integrate them into in the future.

Adam Zoll does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.