Morningstar - Current market value

Just wondering...

Why does Morningstar's fair equity value sometimes so far away from the current market value?

The efficient market hypothesis sets the current market value as the correct one. However, we know that sometimes the market underprices things. That's fine, but it does not make sense when Morningstar projects JNJ's equity value to be $80 when its highest price over the past decade was a little bit over 70.

Is Morningstar reliable? My financial advising friends use it all the time. My own valuation model confirms JNJ's equity value to be around $80. But, the difference between the estimate and reality is just too great for me to fathom.

Please help...

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