Morningstar, Inc. (MORN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+4.0%

$249.27

vs $239.70 price

Levered DCF

$187.31

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

3.92

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	24.33×	38.98×	86.48×	131.27×	76×	44.36×	42.5×	25.54×
P/B	7.45×	8.9×	9.18×	7.64×	10.39×	7.81×	5.96×	5.01×
P/S	3.72×	6.34×	5.98×	4.93×	8.65×	7.15×	5.48×	4.59×
EV / EBITDA	13.77×	20.25×	31.13×	31.25×	35.99×	23.38×	20.97×	13.22×
Gross margin	61.0%	60.6%	58.6%	58.3%	58.9%	60.0%	59.0%	59.7%
Operating margin	21.5%	21.3%	11.3%	9.0%	15.1%	15.5%	16.1%	21.2%
Net margin	15.3%	16.3%	6.9%	3.8%	11.4%	16.1%	12.9%	17.9%
Current ratio	0.99×	1.05×	0.93×	0.92×	1.13×	1.17×	1.22×	1.66×
Debt / equity	1.15×	0.56×	0.87×	1.1×	0.38×	0.49×	0.63×	0.07×
Interest coverage	13.17×	9.72×	4.46×	5.91×	29.54×	19.39×	21.79×	119.89×
Dividend yield	0.8%	0.5%	0.5%	0.7%	0.4%	0.5%	0.7%	0.9%
Payout ratio	20.6%	18.7%	45.3%	87.2%	28.0%	23.0%	31.4%	23.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	30.6%	22.9%	10.6%	5.8%	13.7%	17.6%	14.0%	19.6%
Return on invested capital	15.4%	14.5%	7.2%	3.5%	9.2%	8.1%	7.6%	15.7%
Return on assets	10.4%	10.4%	4.1%	2.0%	6.8%	8.3%	6.4%	12.6%
Free cash flow yield	4.9%	3.1%	1.6%	1.8%	2.4%	3.1%	3.9%	5.1%
Earnings yield	4.1%	2.6%	1.2%	0.8%	1.3%	2.3%	2.4%	3.9%
Enterprise value	$10B	$14.8B	$13B	$10.2B	$14.8B	$10.1B	$6.8B	$4.4B
Net debt / EBITDA	1.28×	0.55×	1.97×	2.91×	0.12×	0.47×	1.09×	-0.9×
Cash conversion cycle (days)	23	24	28	24	20	54	60	14