This week I kept things simple. I screened our entire domestic coverage for the 25 cheapest U.S. stocks using only one input: price/fair value.
To be sure, the Morningstar fair value estimate is a pretty robust data point on its own. To determine a stock's fair value estimate, analysts create a detailed projection of a company's future cash flows, resulting from our independent research of companies' income statements, balance sheets, and capital investment assumptions. We use scenario analysis, in-depth competitive advantage analysis, and a variety of other analytical tools to augment this process.
Karen Wallace, CFP® does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.