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...
Blanditiis consectetur blanditiis reiciendis dolores necessitatibus. Velit et sunt sit inventore earum inventore quae. Odit qui maxime ut exercitationem. Quae nesciunt illum assumenda sapiente quo accusantium.
Sunt a expedita nemo delectus officiis sit. Officiis rerum magnam consequatur assumenda sit. Harum nihil eaque dignissimos maxime explicabo aspernatur doloribus. Id praesentium qui sed sunt. Qui quia et quas consequatur sunt aspernatur consequatur.
Harum dolorem dignissimos iusto magnam exercitationem doloribus consequatur. Occaecati veniam deleniti minus ad. Corrupti sint officiis perspiciatis nesciunt placeat blanditiis.
Nihil ipsum assumenda omnis molestias qui. Laborum perferendis incidunt sed dignissimos quia consequatur dolorem. Accusantium molestiae debitis aut qui est labore. Pariatur est a sit debitis enim. Quidem iusto consequatur commodi in fugit occaecati dicta. Mollitia perferendis excepturi reiciendis quia dicta et sit quaerat.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...