Morningstar Magazine - April/May 2015 - 90

Data Dashboard

Morningstar Global Valuation Lens
As Germany and China see their stock markets rise, falling crude prices have hurt oil-dependent economies
such as Nigeria and Russia. Meanwhile, political drama has dinged Greece and Argentina.
U.S. 4.0%

< -5.0%

-4.9 to -0.1%

0.0%

Undervalued

Greater
Asia 9.5%

Greater Europe 8.6%

> 5.0%

0.1 to 4.9%

Overvalued

Fairly Valued

Price/Fair Value by Country 02/28/2015
Finland 9.3%
Norway 2.0%
U.K. 1.6%

Canada 4.7%

France 6.2%
United States 4.0%

Russia -4.2%
Sweden 11.0%
Germany 16.6%

China 17.8%

Portugal 1.4%

Japan 11.2%
Pakistan -0.4%

Mexico 6.5%

South Korea -0.8%

Nigeria -8.6%
Brazil -0.4%

Indonesia 5.6%

India 9.9%
New Zealand 6.2%

South Africa 6.9%

Australia 1.1%

Chile 2.4%
Argentina -3.4%

Undervalued Countries 02/28/2015

10 Overvalued Countries 02/28/2015

P/FV (%)

Companies

Uncertainty
Rating

Country

P/FV (%)

Companies

Nigeria

-8.6

89

Very High

China

17.8

2,291

Greece

-7.3

65

Very High

Germany

16.6

492

Medium

Russia

-4.2

95

Very High

Netherlands

13.1

96

Medium

Argentina

-3.4

57

High

Belgium

12.9

105

High

Vietnam

-1.7

230

High

Italy

11.7

229

High

Austria

-1.2

50

High

Japan

11.2

3,476

High

South Korea

-0.8

1,674

Very High

Sweden

11.0

372

Pakistan

-0.4

314

Very High

India

9.9

2,546

High

Hong Kong

-0.2

1,087

High

Finland

9.3

111

High

Philippines

7.8

174

High

Country

Uncertainty
Rating

High

Medium

Country fair-value ratios are derived from P/FV ratios on underlying stocks in those nations, generated primarily from estimates by Morningstar analysts, or, when an analyst estimate isn't available, a fair value generated using
Morningstar's quantitative equity ratings. The data is then adjusted to account for market capitalization. Some countries are omitted due to outliers in the data: less than a $10,000 three-month median-dollar-trading volume or fewer
than 20 total stocks that clear the screens. Stocks that trade for 50 cents or less a share are also removed. Uncertainty attempts to measure the confidence Morningstar analysts have in a company's ability to generate future cash flows.

90

Morningstar April/May 2015



Morningstar Magazine - April/May 2015

Table of Contents for the Digital Edition of Morningstar Magazine - April/May 2015

Contents
Morningstar Magazine - April/May 2015 - Cover1
Morningstar Magazine - April/May 2015 - Cover2
Morningstar Magazine - April/May 2015 - 1
Morningstar Magazine - April/May 2015 - 2
Morningstar Magazine - April/May 2015 - Contents
Morningstar Magazine - April/May 2015 - 4
Morningstar Magazine - April/May 2015 - 5
Morningstar Magazine - April/May 2015 - 6
Morningstar Magazine - April/May 2015 - 7
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Morningstar Magazine - April/May 2015 - 28
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Morningstar Magazine - April/May 2015 - Cover3
Morningstar Magazine - April/May 2015 - Cover4
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