Morningstar Magazine - August/September 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

06/2015-06/2018

Growth of $10K (07/2015-06/2018)

700

Overvalued

467

15.08

Morningstar Wide Moat Focus Index

13.92

451
Morningstar
US Market Index

Undervalued

10
8

0
06/2016

06/2017

07/2015

10 Most Undervalued Non-U.S. Stocks With Wide Moats 06/30/2018
Company

Price

Fair Value

Tencent 00700:HK

HKD 393.80

HKD 641.00

GEA Group G1A:DE

EUR 28.89
CHF 220.55

Roche ROG:CH

P/FV

Morningstar
Rating

14
12

350

06/2015

$16K

07/2016

07/2017

Top 20 Cheapest Index Holdings 06/30/2018
Company

Price ($)

Fair
Value ($)

P/FV

0.61 QQQQ

Cardinal Health CAH

48.83

82.00

0.61

EUR 47.00

0.61 QQQQQ

L Brands LB

36.88

60.00

0.61

CHF 325.00

0.68 QQQQQ

McKesson MCK

133.40

210.00

0.66

166.72

263.00

0.66

Fanuc 6954:JP

JPY 22,005.00 JPY 31,800.00

0.69 QQQQ

Allergan AGN

Imperial Brands IMB:GB

GBX 2,822.50 GBX 3,900.00

0.72 QQQQQ

CVS Health CVS

64.35

96.00

0.69

Enbridge ENB:CA

CAD 47.00

CAD 64.00

0.73 QQQQ

General Mills GIS

44.26

59.00

0.76

Sanofi SAN:FR

EUR 68.65

EUR 89.00

0.77 QQQQ

Starbucks SBUX

48.85

64.00

0.77

Nabtesco 6268:JP

JPY 3,410.00

JPY 4,400.00

0.78 QQQQ

Stericycle SRCL

65.29

86.00

0.77

Brambles BXB:AU

AUD 8.88

AUD 11.20

0.79 QQQQ

Franklin Resources BEN

32.05

41.00

0.78

0.80 QQQQQ

Philip Morris International PM

80.74

104.00

0.79

Compass Minerals International CMP

65.75

83.00

0.80

Comcast CMCSA

32.81

42.00

0.80

Walt Disney DIS

104.81

130.00

0.81

Procter & Gamble PG

78.06

98.00

0.81

Hershey HSY

93.06

116.00

0.82

Medtronic MDT

85.61

105.00

0.83

Zimmer Biomet Holdings ZBH

111.44

138.00

0.83

Microsoft MSFT

98.61

122.00

0.83

AmerisourceBergen ABC

85.27

106.00

0.83

Mondelez International MDLZ

41.00

51.00

0.83

British American Tobacco BATS:GB

GBX 3,830.50 GBX 4,800.00

10 Most Undervalued Morningstar Equity Best Ideas 06/30/2018
Company

Price

Fair Value

Morningstar
P/FV Rating

Great Wall Motor 2333:HK

HKD 6.00

HKD 13.50 0.44 QQQQQ

Telefonica TEF:ES

EUR 7.28

EUR 13.00 0.56 QQQQQ

G8 Education GEM:AU

AUD 2.33

AUD 4.00 0.58 QQQQ

Anixter International AXE

$63.30

Telstra TLS:AU

AUD 2.62

$107.00 0.59 QQQQQ
AUD 4.40 0.60 QQQQ

BT Group BT.A:GB

GBX 217.80

GBX 360.00 0.61 QQQQQ

Tencent 00700:HK

HKD 393.80

HKD 641.00 0.61 QQQQ

GEA Group GIA:DE

EUR 28.89

EUR 47.00 0.61 QQQQQ

HKD 4.42

HKD 6.80 0.65 QQQQQ

Guangshen Railway 00525:HK

Cameco CCJ

76

Morningstar August/September 2018

$10.97

$17.00 0.67 QQQQ

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 - August/September 2018
