RE:RE:Morningstar's Quantitative Equity Research Report for ATEthemagicbox wrote: Thanks for posting this davgro. Its a little disappointing to see it valued at sub $2 but at least their uncertainty is extreme , so they are very "uncertain" about that quantitative valuation.
Their definition: Extreme – the interquartile range for possible fair values is greater than 80%
The extreme uncertainty rating which can directly impact the fair value of the stock is a result of ATE being in the biotech sector. You can put a "qualitative value" on the science, which most analysts do with their target price for the stock. Morningstar's rating system is totally quantitave thus the extreme uncertainty associated with the fair value price.
That said, I find it encouraging that the stock is trading at a 54% discount to their
quantitative fair value. I also look at their research as being
totally impartial as:
Morningstar does not receive commissions for providing research and does not charge companies to be rated.
Morningstar is not a market maker or a liquidity provider of the security noted within their report.
Morningstar has not been a lead manager or co-lead manager over the previous 12-months of any publicly disclosed offer of financial instruments of the issuer.