Morningstar announced Monday that it has expanded its equity coverage with quantitative ratings and reports for approximately 28,000 companies globally.
The new ratings—called Quantitative Fair Value Estimate, Quantitative Valuation, Quantitative Uncertainty, Quantitative Economic Moat and Quantitative Financial Health—are based on quantitative statistics and generated by a statistical model based on Morningstar’s analyst-driven equity ratings.
The ratings also consider financial datapoints such as earnings yield, average daily volume and total return volatility. The quantitative ratings are calculated daily and derived from the analyst ratings of a company’s peers as determined by statistical algorithms.
“We’re offering a new level of equity coverage that leverages our existing analyst ratings and harnesses Morningstar’s robust global equity data on thousands of companies, allowing us to consistently apply our approach to equity analysis to a wider universe of stocks,” said Haywood Kelly, Morningstar’s senior vice president of equity and credit research, in a statement. “The ratings can serve as a second opinion for investors to consider when evaluating a company.”