Which UK Companies Are High Risk?

Morningstar's Uncertainty Rating gives investors an insight into how volatile a company's profits are likely to be

James Gard 30 March, 2020 | 11:20AM

Hazard

Stock markets famously hate uncertainty and there’s a lot of it about right now. Are we already in recession and, if so, how long will it last? Some experts forecast that the coming economic downturn will be worse than that of financial crisis, which in itself was the biggest slump since the Great Depression.

Morningstar has a more precise measure of “uncertainty” that it applies to stocks and this relates to their “fair value” - the share price our analysts ascribe to a company. We regularly write about “fair value” and “economic moats” in relation to how shares we cover are over- or undervalued and whether they have competitive advantages.

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About Author

James Gard  is content editor for Morningstar.co.uk

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