RE:RE:DM valuation Morningstar uses an algorithm that includes up to date data crunching and comparisons to other similar companies that are covered by an analyst. What they come out with is a Fair Value Share Price which essentially means that is what the algorithm denotes should be the current share price. I have been using it for years as a tool for my own DD. It appears in the middle of last year that Morningstar updated the algorithm leaving it even more reliable, if not more aligned with actual sp movement (which imho left it a more conservative).
It's value increases with companies that are generating revenue and have a reasonably consistent volume of trading. At that point they have another valuable 1-star and 5-star metric that provides an indication of the sp at which the stock is significantly over-valued and the sp at which it is significantly under-valued.
I've included a link of a scientific study that looked at the reliability of Morningstar.
https://www.academyfinancial.org/resources/Documents/Proceedings/2015/C2_Bolster.pdf
GLTY!!! It certainly appears DM is setting itself up for something very rewarding to investors.
Aiking wrote:
PercySweetwater wrote: Morningstar "Fair Value" for DM as of Jan 17, 2022" is $0.55
Do we know how the calculate it, as it is the lowest "Fair Value" for DM i saw yet.