3 Undervalued Equities

THE VALUE INVESTOR: These UK companies are trading at less than their Fair Value Estimates. Could they be worth considering for the equity portion of your portfolio?

Emma Wall 22 October, 2014 | 4:33PM

Identifying quality companies that are trading at less than their intrinsic value and snapping them up before they bounce can make you a pretty penny.

Morningstar equity analysts use qualitative research to determine a share’s Fair Value Estimate, and from this they award it a star rating. A stock with a five star rating is trading at significantly less than its Fair Value – and one that has been awarded one star is considered by analysts to have a share price much greater than the Fair Value estimate.

We screened for those stocks with a four or five star status indicating they are currently undervalued.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Kingfisher PLC263.60 GBX1.31
Morrison (Wm) Supermarkets PLC192.25 GBX0.55

About Author

Emma Wall  is former Senior International Editor for Morningstar

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