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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. 

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