Morningstar Magazine - June/July 2018 - 108

Data Dashboard

Morningstar Wide Moat Focus Index The index consists
of U.S. wide-moat stocks with the lowest price/fair value ratios.
The table below shows the 20 cheapest in the index.

Morningstar Equity Star Rating Tracker Number of stocks

globally that received undervalued (4 and 5 stars) and overvalued
(1 and 2 stars) ratings from Morningstar's equity analysts.
Number of Stocks

05/2015-04/2018

Growth of $10K (05/2015-04/2018)

700

Overvalued

14.16

439

Morningstar Wide Moat Focus Index

13.40

427
Morningstar
US Market Index

Undervalued

0
05/2016

05/2017

05/2015

10 Most Undervalued Non-U.S. Stocks With Wide Moats 04/30/2018
Company

Price

Fair Value

Tencent 00700:HK

HKD 391.00

HKD 641.00

Enbridge ENB:CA

CAD 38.89

Imperial Brands IMB:GB
Roche ROG:CH

P/FV

Morningstar
Rating

14
12

350

05/2015

$16K

05/2016

10
8

05/2017

Top 20 Cheapest Index Holdings 04/30/2018
Company

Price ($)

Fair
Value ($)

P/FV

34.91

65.00

0.54

153.65

263.00

0.58

0.61 QQQQ

L Brands LB

CAD 62.00

0.63 QQQQQ

Allergan AGN

GBX 2604.50 GBX 3,900.00

0.67 QQQQQ

Stericycle SRCL

58.71

86.00

0.68

0.68 QQQQQ

CVS Health CVS

69.83

99.00

0.71

273.60

382.00

0.72

CHF 220.85

CHF 325.00

GEA Group G1A:DE

EUR 32.41

EUR 47.00

0.69 QQQQ

Biogen BIIB

Sanofi SAN:FR

EUR 65.79

EUR 89.00

0.74 QQQQ

Cardinal Health CAH

64.17

89.00

0.72

JPY 23,560.00 JPY 31,800.00

0.75 QQQQ

Procter & Gamble PG

72.34

98.00

0.74

Fanuc 6954:JP
Japan Tobacco 2914:JP

JPY 2,936.50

JPY 3,750.00

0.77 QQQQQ

General Electric GE

14.07

19.00

0.74

Reckitt Benckiser RB.:GB

GBX 5,702.00 GBX 7,300.00

0.78 QQQQQ

General Mills GIS

43.74

59.00

0.74

0.79 QQQQ

McKesson MCK

156.21

210.00

0.74

Microchip Technology MCHP

83.66

112.00

0.75

Comcast CMCSA

31.39

42.00

0.75

Medtronic MDT

80.13

105.00

0.76

Walt Disney DIS

100.33

130.00

0.77

Mondelez International MDLZ

39.50

51.00

0.77

Campbell Soup CPB

40.78

52.00

0.78

Dominion Energy D

66.56

84.00

0.79

Hershey HSY

91.94

116.00

0.79

Microsoft MSFT

93.52

117.00

0.80

Wells Fargo WFC

51.96

65.00

0.80

InvoCare IVC:AU

AUD 13.03

AUD 16.50

10 Most Undervalued Morningstar Equity Best Ideas 04/30/2018
Company

Price

Fair Value

Morningstar
P/FV Rating

$58.90

$107.00 0.55 QQQQQ

AUD 2.23

AUD 4.00 0.56 QQQQQ

Allergan AGN

$153.65

$263.00 0.58 QQQQQ

Tencent 00700:HK

HKD 391

Anixter International AXE
G8 Education GEM:AU

Great Wall Motor 2333:HK
Cenovus Energy CVE:CA
Cameco CCJ
Enbridge ENB:CA

HKD 8.23
CAD 12.86

HKD 641.00 0.61 QQQQ
HKD 13.50 0.61 QQQQQ
CAD 21.00 0.61 QQQQ

$10.53

$17.00 0.62 QQQQQ

CAD 38.89

CAD 62.00 0.63 QQQQQ

Johnson Controls Internat'l JCI

$33.87

$53.00 0.64 QQQQ

Hanesbrands HBI

$18.47

$29.00 0.64 QQQQQ

108

Morningstar June/July 2018

Morningstar, Inc's Investment Management division licenses indexes to financial institutions as the tracking indexes for
investable products, such as exchange-traded funds, sponsored by the financial institution. The license fee for such use is
paid by the sponsoring financial institution based mainly on the total assets of the investable product. Neither Morningstar,
Inc. nor its investment management division markets, sells or makes any representations regarding the advisability of
investing in any investable product that tracks a Morningstar index.
The Best Ideas list is compiled by Morningstar's equity research teams. Price/fair-value ratios are calculated by Morningstar
analysts and reflect stocks currently under coverage. Wide Moat Focus Index methodology changed in June 2016.
Table of Contents for the Digital Edition of Morningstar Magazine - June/July 2018
