Morningstar Magazine - December 2017/January 2018 - 76

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

10/2014-10/2017

Growth of $10K (10/2014-10/2017)

700

Overvalued

545
285

13.67
13.52

Morningstar
US Market Index

12

350
10

Undervalued
Morningstar Wide Moat Focus Index

0
10/2014

10/2015

10/2014

10/2016

10 Most Undervalued Non-U.S. Stocks With Wide Moats 10/31/2017
Company

GlaxoSmithKline GSK:GB
Roche ROG:CH

Price

Fair Value

GBX 1,357.50 GBX 1,890.00

P/FV

Morningstar
Rating

10/2015

8

10/2016

Top 20 Cheapest Index Holdings 10/31/2017
Company

Price ($)

Fair
Value ($)

P/FV

0.72 QQQQ

L Brands LB

43.04

69.00

0.62

CHF 230.50

CHF 318.00

0.73 QQQQQ

CVS Health CVS

68.53

109.00

0.63

CAD 49.58

CAD 64.00

0.77 QQQQ

Stericycle SRCL

70.85

110.00

0.64

GBX 3,070.50 GBX 3,900.00

0.79 QQQQ

Allergan AGN

177.23

273.00

0.65

137.88

210.00

0.66

Enbridge ENB:CA
Imperial Brands IMB:GB

$14K

Sanofi SAN:FR

EUR 81.29

EUR 98.00

0.82 QQQQ

McKesson MCK

Brambles BXB:AU

AUD 9.46

AUD 11.20

0.84 QQQQ

Express Scripts Holding ESRX

61.29

89.00

0.69

Elekta AB EKTA B:SE

SEK 80.50

SEK 93.00

0.85 QQQQ

General Electric GE

20.16

29.00

0.70

Ritchie Bros Auctioneers RBA:CA

CAD 36.18

CAD 42.00

0.86 QQQQ

AmerisourceBergen ABC

76.95

106.00

0.73

Kao 4452:JP

JPY 6,836.00 JPY 7,900.00

0.87 QQQQ

Cardinal Health CAH

61.90

84.00

0.74

Reckitt Benckiser Group RB:GB

GBX 6,735.00 GBX 7,400.00

0.89 QQQQ

Twenty-First Century Fox FOXA

26.15

35.00

0.75

Walt Disney DIS

97.81

130.00

0.75

Compass Minerals International CMP

65.60

84.00

0.78

Mondelez International MDLZ

41.43

50.00

0.83

Medtronic MDT

80.52

97.00

0.83

Starbucks SBUX

54.84

66.00

0.83

Wells Fargo WFC

56.14

67.00

0.84

Guidewire Software GWRE

79.98

95.00

0.84

Merck MRK

55.09

65.00

0.85

Lowe's LOW

79.95

93.00

0.86

Veeva Systems VEEV

60.94

69.00

0.88

10 Most Undervalued Morningstar Equity Best Ideas 10/31/2017
Company

Cameco CCO:CA

Price

Fair Value

Morningstar
P/FV Rating

CAD 10.48 CAD 22.00 0.48 QQQQQ

Advance Auto Parts AAP

$81.74

$154.00 0.53 QQQQQ

Mattel MAT

$14.12

$26.00 0.54 QQQQQ

Synaptics SYNA

$37.12

$64.00 0.58 QQQQ

Cenovus Energy CVE:CA

CAD 12.52 CAD 21.00 0.60 QQQQ

TripAdvisor TRIP

$37.50

$63.00 0.60 QQQQ

Stericycle SRCL

$70.85

$110.00 0.64 QQQQQ

Allergan AGN

$177.23

$273.00 0.65 QQQQQ

McKesson MCK

$137.88

$210.00 0.66 QQQQQ

$22.50

$34.00 0.66 QQQQQ

Hanesbrands HBI

76

Morningstar December/January 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 - December 2017/January 2018
